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
Tuesday, June 29, 2010
Monday, June 28, 2010
Conventional vs. FHA
Conventional loans are extremely stringent, so unless you have perfect pay in every single account you have, and have a wallet full of cash then an FHA mortgage may be the best option for you. With the economy the way it is, it does offer some good buys for homeowners, but it’s best to keep in mind that we need to be lending and borrowing responsibly. Regardless of the proposal for the home you are looking at, if you are not comfortable with anything regarding the process you need to say so.
Remember, FHA itself is not guaranteeing that every consumer will get a loan, and they aren’t granting the loan themselves. FHA simply insures the loan, meaning they promise to pay the loan when the borrower defaults on the loan. This insurance to the lender doesn’t guarantee that everyone will be approved for an FHA mortgage; those who apply will still need to qualify based on their income, credit and abide any FHA guidelines regarding the property.
For more information on FHA loans, and how to qualify, you can go to www.fhaloansnow.net.
-Mayer Dallal
Remember, FHA itself is not guaranteeing that every consumer will get a loan, and they aren’t granting the loan themselves. FHA simply insures the loan, meaning they promise to pay the loan when the borrower defaults on the loan. This insurance to the lender doesn’t guarantee that everyone will be approved for an FHA mortgage; those who apply will still need to qualify based on their income, credit and abide any FHA guidelines regarding the property.
For more information on FHA loans, and how to qualify, you can go to www.fhaloansnow.net.
-Mayer Dallal
What Causes a Low Credit Score?
If you are paying your bills on time that is great, but you may have too many of them. Continuing to open new accounts will drive your score down, making it nearly impossible for you to balance out your debt to income ratio. You also need to keep in mind that the more of your credit you use, the more your payments will go up with your revolving accounts. With a mortgage and a car loan things work a little differently, as they are a fixed interest loan. A fixed interest loan means that you will have the same rate and same payments for the life of your loan. Revolving debt pertains to credit cards, or lines of credit on the home. The rates adjust with the prime rate and any additional add-ons the bank has, thus driving up your payment. Once you exceed 40% of your available credit on any account, this will give you a low credit score. It shows the lender or bank that you are not able to manage your credit or that you are planning to use more credit, so beware.
Paying your bills on time is great, but remember cash is king! Don't borrow anymore than you need to no matter what the case may be. Always try to go the way of paying cash, for the exception of your home mortgage. Pay cash for cars if you can't, but if you can't this is a new trade line or account that you can use to help build your credit up. Building your credit up and sticking to your guns on cash will keep you away from a low credit score. For more information on credit, and how you can improve your situation, please go to www.fhaloansnow.net.
-Mayer Dallal
Paying your bills on time is great, but remember cash is king! Don't borrow anymore than you need to no matter what the case may be. Always try to go the way of paying cash, for the exception of your home mortgage. Pay cash for cars if you can't, but if you can't this is a new trade line or account that you can use to help build your credit up. Building your credit up and sticking to your guns on cash will keep you away from a low credit score. For more information on credit, and how you can improve your situation, please 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
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
Saturday, June 26, 2010
Scrubbing Your Credit Report
Reviewing your credit for potential problems is so important. You won’t know what needs to change until you look your credit in the eye and deal with it. Do you have bad credit? Are you aware of what you have in your name? If you don’t know, then why not?
The key to dealing with bad credit is to get your credit report from all three major credit bureaus. Not all creditors report to each and every one, so it is best to see what is out there with each of them. Not all of them get the information at the same time, and there are companies that may only report to two of three bureaus. Every once in awhile you will find a company or lender that just reports to Transunion, so be sure to find this out in the beginning.
Finding out what accounts you have in your name and what accounts show slow pay is the best way to fix your bad credit. If you have bad credit this can prevent you from getting the best rates and programs available to you in all areas including getting an FHA loan. If you have never owned a home and you would like to, then partaking of an FHA program is a good idea, but with bad credit that will stop you dead in your tracks. Have a credit score of 620 or higher will enable you to take advantage of their low down payment option of 3.5%, but with a lower credit score you will need to come up with more money.
For more information on credit guidelines for FHA and options to get your credit repaired, you can go to www.fhaloansnow.net.
-Mayer Dallal
The key to dealing with bad credit is to get your credit report from all three major credit bureaus. Not all creditors report to each and every one, so it is best to see what is out there with each of them. Not all of them get the information at the same time, and there are companies that may only report to two of three bureaus. Every once in awhile you will find a company or lender that just reports to Transunion, so be sure to find this out in the beginning.
Finding out what accounts you have in your name and what accounts show slow pay is the best way to fix your bad credit. If you have bad credit this can prevent you from getting the best rates and programs available to you in all areas including getting an FHA loan. If you have never owned a home and you would like to, then partaking of an FHA program is a good idea, but with bad credit that will stop you dead in your tracks. Have a credit score of 620 or higher will enable you to take advantage of their low down payment option of 3.5%, but with a lower credit score you will need to come up with more money.
For more information on credit guidelines for FHA and options to get your credit repaired, 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
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
Thursday, June 24, 2010
The Best FHA Mortgages
People always ask me what the best FHA mortgages are. Truthfully, FHA in my mind is the best way to go no matter what. FHA is the Federal Housing Administration, and they insure the loan for the lender if you default on your mortgage. FHA offers the best programs and rates around, along with alternatives for the buyer or the current homeowner.
The best FHA mortgages are the 30 year fixed option, that way you know your monthly payment is always the same. In addition, you will be escrowing your taxes and insurance so that you don’t have to come up with that money all at once, which is smart. I don’t know of too many folks that can come up with that kind of money in one lump sum. It just isn’t that simple, and if you think you can save up the money, you will usually end up using it for something else. I have seen it happen so many times.
FHA also offers one of the best loans yet, which is the Energy Efficient Mortgage, or the EEM. This is no doubt one of the best FHA mortgages, because it gives homeowners the opportunity to finance the amount of home improvements into the home, and it can be worked into the loan for a home buyer as well, with no additional qualifications needed. FHA uses the amount of savings that you would get from your energy saving improvements to alleviate the burden of a higher payment. This is a commonsense approach to underwriting that you won’t find with a conventional loan.
For more information on the best FHA mortgages, you can visit my website at www.fhaloansnow.net, or call me at 310-498-2700.
-Mayer Dallal
The best FHA mortgages are the 30 year fixed option, that way you know your monthly payment is always the same. In addition, you will be escrowing your taxes and insurance so that you don’t have to come up with that money all at once, which is smart. I don’t know of too many folks that can come up with that kind of money in one lump sum. It just isn’t that simple, and if you think you can save up the money, you will usually end up using it for something else. I have seen it happen so many times.
FHA also offers one of the best loans yet, which is the Energy Efficient Mortgage, or the EEM. This is no doubt one of the best FHA mortgages, because it gives homeowners the opportunity to finance the amount of home improvements into the home, and it can be worked into the loan for a home buyer as well, with no additional qualifications needed. FHA uses the amount of savings that you would get from your energy saving improvements to alleviate the burden of a higher payment. This is a commonsense approach to underwriting that you won’t find with a conventional loan.
For more information on the best FHA mortgages, you can visit my website at www.fhaloansnow.net, or call me at 310-498-2700.
-Mayer Dallal
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