Wouldn’t it be FUN to own a home? Your own backyard, your own bedroom you can paint anyway you want? AND… get cash back from Uncle Sam?! Minimum credit score requirements for FHA Loans in NC are pretty low, and you can get a down payment GIFT or Assistance from the State of NC to buy a house!
The most important thing to remember is that you need a 12 month history of making payments on time. If you are currently behind on ANY credit card, or car payments (or RENT!) catch them up! Get a second job, call your parents, clip coupons, only pay cash – make Birthday Presents… borrow clothes from your girlfriend… BUT GET THEM CAUGHT UP!
Once you get that on track, look at how many Credit Cards you have. Revolving Credit is going to be the FASTEST way to get your scores higher. Secured Credit Cards might be the answer for you – or you might want to see if you can get added to a family member’s credit card account.
After you dispute what you can, and you are making payments on time – do what you can to pay credit card limits down to 1/2 of their credit limit.
For an FHA home loan, you will need 3.5% for a down payment next year. Remember, if you are first time homebuyer, or you have not owned a home as your primary residence in 3 years, you might qualify for a $8000 downpayment gift from the State of NC . Because of this, it’s easier to go ask for a gift from your family and friends to purchase the home. If you are getting married, FHA allows for a Bridal Registry to account for the downpayment!
So – no matter what your score is now, if you have 1 or 2 credit cards (revolving credit), and a car payment, or student loan (installment loans), you should be able to buy once you have 12 months of ON TIME payments! The minimum score is 620 from FHA – but with 12 months of “clean credit” you should be able to buy!
If you have questions about purchasing a home in Cary, Apex or Holly Springs using a FHA mortgage, please call Steve and Eleanor Thorne, 919-649-5058. Or connect with NC Mortgage Experts on Facebook or Google +