FHA Loan Tips for Improving Credit
Track Your Credit Score and Stay on Top of Problems
While FHA loans are known as a great service for people looking for help buying a house, applicants can make the process even easier if they take steps toward ensuring their credit history is in tip-top shape. The agency advises prospective home buyers to approach FHA loans with their best possible credit history to eliminate any potential risk of not qualifying.
Whether you're looking for a loan to mortgage a new house or to refinance a house you already own, it makes the most sense open up all your options with an optimal credit rating. The FHA recommends having a satisfactory payment history of at least one year before applying for a loan.
Credit Tips for Your FHA Loan
Here are some tips to help you on your way:
- Take a Close Look at Your Credit ReportsYou don't know what could be hurting your credit score unless you actually check. Get your credit reports from the three national credit bureaus--Experian, Equifax and TransUnion--at no cost and comb them over for anything suspicious or questionable.
- Dispute InaccuraciesIf you find errors on your credit report, notify the reporting bureau in writing so you have a record. Provide any additional records or evidence you have to support your dispute.
- Find Professional HelpThe FHA recommends applicants with credit problems get help from a Consumer Credit Counseling program. A credit counselor can help you get back on track.
- Bankruptcy / ForeclosureIf you've suffered from a bankruptcy or foreclosure in the past few years, you might still be able to qualify for an FHA loan. Develop a satisfactory payment history, re-establish good credit and meet the other FHA requirements.
While your credit history is just one of the many factors that make up your eligibility for an FHA loan, it is no doubt one of the most important. Having a higher score not only helps you qualify, you can also benefit from the low 3.5 percent down payment on mortgage loans available to applicants with a FICO score over 580. FHA approved lenders don't take your credit history lightly, and neither should you.
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FHA Loan Articles and Mortgage News
April 12, 2018 - There’s more than one factor at work in that particular equation, as we’ll see. Did you know you can buy or renovated a multi-unit property with an FHA mortgage? Or rent out the unused living spaces in your newly purchased property?
April 7, 2018 - The FHA loan program has several options to refinance a home loan. Borrowers need to choose mortgage refi options not only based on their financial needs and goals, but also their plans for the property they have purchased long-term.
April 5, 2018 - FHA loan rules in HUD 4000.1 address situations where a loan applicant may have a short employment history, frequent changes in employers, and gaps in employment. They also instruct the lender how to proceed when a borrower has a temporary reduction in income.
April 1, 2018 - If you are new to the home loan process, you may encounter industry jargon that sounds confusing. First time home buyers might not realize that most mortgages, FHA loans or not, require down payments plus cash needed to close.
March 30, 2018 - When you find a house you want to commit to purchasing with an FHA home loan, the appraisal process is what determines the market value of the property compared to the asking price. The FHA appraisal is also a basic review of the home to make sure it meets minimum standards.
FHA.com Reviews
FHA.com is a one-stop resource for homebuyers who want to make the best decisions when it comes to their mortgage. With our detailed, mobile-friendly site, individuals can access information about different FHA products, the latest loan limits, and numerous other resources to make their homebuying experience easier. Take a look at some of the reviews from other FHA.com visitors!
