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When you are trying to increase your credit score – TIME is a big factor.
How long has it been since you missed a payment. For Car Loans and Mortgage Loans – that number MUST be 12. Meaning you have NO LATE PAYMENTS in the last 12 months.
Right now this is the most important part of increasing your credit score. Every month past that 12 month period helps get your score higher… [Read more...]
Well… I wouldn’t get TOO excited! According to the underwriters I’ve talked to lately – even though the Veteran’s Administration doesn’t require a Credit Score, they will require a MINIMUM of at least 12 months of clean credit.
There’s good news! No matter what your score is – as long as you meet the minimum score requirements for the Underwriter to approve your mortgage, you will get the best Home Loan Rate for Veteran’s! In the past, a lower score could impact your rate. That’s no longer the case, and as long as we can get your loan approved, your credit score will not change your mortgage interest rate with a VA home loan!
If you’ve had a Bankruptcy – you can still get a VA Mortgage loan. You must be at least 1 year out of Chapter 13 and 2 years out of Chapter 7. Most underwriters want you to have re-established credit and have those “pesky” 12 months of clean credit. Foreclosure is treated the same as a Chapter 7, so a 2 year waiting period generally applies.
Are you a Veteran in Credit or Debt Counseling? We might still be able to help you get into a house! [Read more...]
We talk to people everyday who have questions about qualifying for a FHA Mortgage Loan in NC. FHA Underwriting Guidelines, are actually pretty straightforward.
Unlike qualifying for a VA Mortgage loan (where you must be a qualifying Veteran) or a USDA Home Loan (that requires that you meet income limits for your county and the property must fit within the USDA RD Loan Footprint) – FHA has far fewer restrictions! They do have Maximum Loan Amounts, which vary per county – but other than that, just about anyone who wants to purchase an Owner Occupied Home can do so!
Does your credit look like a train wreck? I’ve talked to several clients recently who hit a rough spot – and are working their way out. They had some questions I thought other people might need answered too!
How long does negative information stay on a credit report?
The Fair Credit Reporting Act says that negative information can stay on your report for a minimum of seven years (I always thought that said MAXIMUM – but I was wrong). There are some exceptions to this:
* Delinquency information like late payments remain for seven years from the DATE OF DELINQUENCY. This is especially tricky if you have collections that are being sold from one account to the other. Because the Collection companies are re-filing these delinquencies as if they are brand new offenses!
* Charge-offs stay for seven years PLUS 180 days from the date reported to the credit bureau.
* Student loan defaults report for seven years.
* Foreclosures stay on your report for seven years. The seven year rule also applies to Law suits, judgments and paid tax liens.
* Bankruptcy stays for 10 years from the date you file.*
* UNPAID TAXES stay on your report for 15 years! Ouch!
If you have questions about USDA Home Loans, or about using FHA or VA Home loans to purchase a home in NC – please call Steve and Eleanor Thorne, USDA Home Loan Experts in NC 919-649-5058
We just closed a loan for a first time home buyer that made me SOOOO happy I wanted to share her story!
The borrower was married in her early 20′s – had 2 children, and never finished college. Her husband left her a couple of years ago, and she ran into some financial problems… but she hung in there, got a second job, got her mom to help with the kids… went to school and got her degree.
Now she’s a nurse and she contacted us earlier this year to see if she qualified to purchase a home. Unfortunately her scores were all in the mid – upper 500′s. In order to purchase a home, you really need at least 2 credit scores at or above 620. She had a boyfriend (who has good credit – really nice guy) and they wanted to purchase a home together. With just his income, they could purchase around $150,000 but with HER income they could get the home they loved that cost $245,000.
It’s been almost 6 months – but with a ton of determination – we did it! Her scores hit 621 and 623 last month and she was able to purchase her first home! She was so excited at the closing because her boyfriend proposed the night before! Don’t Let Bad Credit Stop You From Buying A Home!
If you have questions about your credit, or buying a home… please call Steve Thorne, 919-649-5058
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!” [Read more...]
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):
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:
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, NC Mortgage Experts, Inc 919-649-5058
Steve & Eleanor ThorneMLO NMLS #60596 Equal Housing Opportunity Lender
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