Mortgage Loans and Bad Credit
March 2, 2009 by Eleanor
Filed under Loan Programs, Score Strategies
If you have bad credit – it does NOT mean you will not be able to buy a home! But, depending on your credit scores – you might have to wait a little while!The NEWEST score requirements are 620. This means that 2 of your 3 scores should be over 620 for a FHA or VA mortgage loan. Your credit scores should be reasonably close to the same number… so if you have a 520, 621, 625 set of scores, that means something is reporting to the 520 credit company that is likely incorrect! So look at ALL THREE of your scores, and see if there’s an “obvious” issue you can resolve.You can’t just dispute the “negative” stuff to get to 620. This is one of the most difficult things for folks to understand. Once you get all of your collections paid, once you get all the negative stuff on your account settled – then you need to have some CURRENT good credit.
Look at what kind of credit you have. Do you have Revolving credit and Installment loans reporting to all three agencies?? A mix of credit will get your scores up to their highest potential!If you have a FORECLOSURE in your background, you can purchase a home again! If you have a Bankruptcy in your background, you can also purchase! So don’t let previous hard times bust your bubble!People do not have bad credit because they woke up one day and said, “darn, I don’t feel like paying my bills anymore.” Decide that you want to have good credit! Then work on it! Do the First Dispute letter (click here) then do the second letter(click here)… Mail them to the three Credit Repositories… then be sure you have at least 3 tradelines! If you need to get a Secure Credit Card - DO IT!For our local market, the total number of homes sold in the Triangle area in 2008 was 20580, down 28% from 2007. The median price of a home in Raleigh was $209,204. Foreclosed homes represented 10% of all transactions in the Raleigh area, compared to about 20% across the country! Our maximum FHA Loan Amount is $295,000. To find out what the maximum FHA loan Limits are for your county in NC, click here!If you are interested in purchasing a home in NC, and have questions about qualifying, call us! Steve and Eleanor Thorne, First Financial Services, Inc at 919-851-3031.
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