Credit Score Guidelines | NC FHA Expert

First Time Home Buyer Raleigh NC FAQs

August 14, 2010 by Eleanor 1 Comment

We work with a TON of First Time Home Buyer’s, and we often find that they need the same basic information to avoid costly mistakes:

- I’m paying $1250 a month in Rent, can I keep my house payments at that same dollar amount? Great News! When you buy a house, you can get a raise! (for more info click here).

- Can I buy a house if I’ve had some credit Boo-Boos? Okay this is tricky – but the answer is YES! It’s just a matter of how long it will take to get your scores up to 620 (OR 580 if you qualify for NC Housing Finance Agency Money!). We have a TON of information on Credit Scores, and how to get them higher! Click here! [Read more...]

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Credit Scores and First Time Home Buyers!

May 20, 2010 by Eleanor 3 Comments

How Credit Scores are calculated is changing, and the minimum scores required for mortgage loans are going HIGHER! For information about “WHY” Credit Scores requirements are changing in NC, click here.

It’s important to know that Transunion began making changes to the way they calculate credit scores, and if you don’t change your credit strategy – you might not be able to purchase!

I think it’s important for First Time Homebuyers (especially) to know what credit scores they need so that they can take advantage of the $8000 Tax Credit, Low Rates and “Cheap Houses!”

If you are using VA Benefits, you need a 620 score, even though VA does not have a MINIMUM credit score! I think that (JMHO) because VA doesn’t have a minimum – those VA rates have gotten higher in the last 2 months! For details on Credit and Veteran’s Administration home loans click here! Again, do not be surprised if the VA rates are not as “cheap” as the FHA and USDA rates! This is a SHIFT! [Read more...]

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Veterans and Debt Counseling – It CAN help!

July 13, 2009 by Eleanor 1 Comment

Under normal circumstances, mortgage lenders can not work with folks who are in Consumer Debt Counseling. Times being what they are, however, Veterans are able to turn to some of these services, and get another HUGE benefit!

For the last several months we have seen Veterans who are working with NON PROFIT credit counseling agencies, and their scores are going WAY up! Here are some of the suggestions we have (we do not work for, nor do we get any money from agencies like these – just our suggestions if you want to purchase a home):

It must be a NON Profit agency that you work with.
You need to make 12 months worth of on time payments
We need a letter from the Agency stating that you are making the payments on time,and that they feel you would be able to handle a mortgage payment of “$XXX.XX”.
The Letter from the Agency must show us how the payments are being dispursed each month.

The way this normally show on your credit report is this… Many collection accounts show under “Collections” on the credit report, with an updated Balance and reporting date at least one or twice a quarter. When you go into a Non Profit Credit Counseling Service – you have an account that you are now making principal and interest payments on.

Let’s say you owe the following in Charged Off, or Collection Debt:

NCO / Sears / $500
ACS / Pottery Barn / $340
Provident / Citi / $950
GMAC AUTO LOANS / $2345

You and the Non Profit might work out a payment of $320 a month. You pay the Non Profit $320, and they send an agreed upon payment to each of those accounts until you pay them off. So, NCO might get $16, and ACS might get $20, and Provident might get $85, and GMAC might get $180 and the remainder would go to the NON Profit for processing all of the checks.

In recognition of the fact that they are receiving payment each month (with interest) the companies stop showing the account past due. They report no further lates, and the account as being paid. With the accounts being shown as “paid” the credit scores will continue to go UP! (For information about MINIMUM Credit Score Requirements for VA Home Loans, click here!)

I think this is a GREAT service for Veterans, and I encourage you to use such a service if you find yourself with accounts that are seriously delinquent! It stops the calls, it puts the budgeting into regular, manageable payments.

To learn more about Veteran Benefits and Home Ownership, click here!

If you have questions about purchasing a home using VA Financing / Mortgage Loan, contact Steve and Eleanor Thorne, Corporate Investors Mortgage Group, Inc 919-649-5058