Credit Requirements Fha Loans

Divorce and Credit – What You Need To Know

With the hard economic times people are facing – I guess it’s not surprising that we are seeing many more people who want to purchase a home – but have a messy divorce in their recent history.

When you have a Dissolution of Marriage where one party says they will take responsibility for the account… that’s nice for the courts… but it doesn’t mean “didly-squat” (that’s right I said it!) when it comes to your credit report.

Just because someone SAYS they are going to take over the payments on a certain account does not MEAN that it will come off of your credit report! In Fact, unless you ACTUALLY have yourself removed from the account, you are still obligated for that debt.

Let’s think about that in terms of a mortgage. You Quick Deed property to the other spouse, and they agree to make payments. In NC – when you purchase a home, you sign a Deed of Trust AND a Note. The Quick Claim Deed takes care of only ONE part of the agreement – you must still be taken off of the Note, or you are STILL Legal Obligated for the Mortgage Loan. In order for THAT to happen – either the party who is keeping the home must pay the note off completely – or they must refinance the mortgage so that it is solely in their name.

If you are a single parent, who is looking for information on how you can purchase the next house, here’s some more information on FHA Guidelines for Single Parents.

If you are in this situation – call us! Steve Thorne 919-649-5058 We can help you buy a house, and counsel you on the steps you need to take to protect yourself.

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Benefits of FHA Mortgage Loans

FHA Mortgage Loans are one of the best mortgage loan programs available for folks purchsing a home in the Wake County Area because it serves so many needs!

You can use the program, as a parent, to help your student or child get into their First Home! The downpayment is 3.5%, and it can be a gift from a family member. They also allow the parent, or family member, to go on the loan to help with qualifying!

The program can also be used to help an elderly parent who might have a limited income live an independant life style!

FHA Mortgage Loans also offer flexability when it comes to new credit - meaning if you have not been in the work force for YEARS, you might not have a very high score – not because you’ve missed a payment, simply because you don’t have a really long credit history!

Borrowers who work second jobs, also find FHA is quicker to accept income from that second job – meaning sometimes only 18 or 20 months of second job income history is required!

We’ve closed over a THOUSAND FHA mortgage loans in our history as Loan Officers! It’s a GREAT program, with HUGE benefits! Call Steve and Eleanor Thorne 919-649-5058 to get pre-qualified today!