Does Bankruptcy Diqualify You for FHA?

The FHA bankruptcy and credit guidelines set forth waiting periods that state how long a person or family would need to wait to do an FHA loan. Bankruptcy waiting periods are two years with reestablished credit, and a good explanation of why it happened. This is a blessing that they are allowing you to borrow money, and you have to understand why they do it. They are insuring your loan and they back if when the borrower defaults, so they make the rules and we just have to abide by them.



FHA credit guidelines state that on a foreclosure, the waiting period is five years, and that is usually from the date of the sale of the property. With a good explanation this may be shortened, but there are no guarantees.



Guidelines were put in place to aid you in making decisions, and to help you know what you need to do to move forward. Unless you educate yourself on what the FHA credit guidelines are, you can’t effectively plan for the future. If you fail to plan, you plan to fail.

For more information how to manage your credit, and qualify through FHA, you can go to www.fhaloansnow.net.

-Mayer Dallal

Poor Credit, Poor Richard

To get rid of poor credit, you need to make one small investment that brings great rewards. Get copies of your credit report from all three major credit reporting bureaus. This will help you to look at the bigger picture so that you can see what you have open, what needs to be paid, cancelled or even completely removed. You can assess the oldest ones first, making any collection companies are contacted and your options have been reviewed. It's best to contact them and make arrangements, than it is to completely ignore them. Explain your situation, and don't back down. When they demand money, tell them the truth and see if you can come up with a viable settlement offer. It's best to pay something than not to pay it at all. It is also wiser to get it settled than to have it go on your credit for ten years unpaid or ending up as a judgment against you.


If there is a judgment, attempt to pay that first. These are typically only going to be accepted as a paid in full arrangement, but you can certainly try. It usually depends on what they are. Try to make payment arrangements on the smallest debts first, because you can really backfire on your plan when you promise too much too soon. Again be honest; you already have poor credit, so don't stress yourself out when things aren't going to change before tomorrow. Pace yourself, focusing on one account at a time.



For more information on how to repair credit, you can go to www.fhaloansnow.net.

-Mayer Dallal

You Can't Live on Bad Credit

Your credit can make you or break you, and having bad credit will definitely break you. Bad credit will stop you from qualifying for credit cards, home loans, car loans, and may now even effect you getting a job.


If you really aren’t sure what your credit is like, then you probably need to pull a copy of your credit report and review it for mistakes along with your pay history. This is the first step in making sure your credit is clear of any problems that may prevent you from moving forward. You’ll need to take into account any open accounts along with double checking to see what you are listed on as the primary that you aren’t aware of. There are plenty of people lurking around out there that can access your personal information, and if you see an account that you don’t remember opening, then call that creditor immediately and tell them what’s going on.

Too many open accounts can drive down your credit score, because it looks like you are living on credit. Having too many accounts open that you aren’t using can give you bad credit, because when spending patterns aren’t consistent with the new behavior it throws up a red flag to the lender. In other words, if you use your card and pay it off every month, or you have an open account that you haven’t used and you start using it all the time that alert the lender that issued you the credit.

Running high balances can give you bad credit too. Remember, that keeping your balances at around 40% or less of your available credit is wise. Going above that percentage will start bringing your credit score down, so use your credit wisely. For more information on how to maintain your credit, and qualify for a loan please visit www.fhaloansnow.net.



-Mayer Dallal