There are some major changes going into effect very soon regarding credit score requirements on FHA and VA loans. It used to be that on these loans you were able to qualify even if your credit score was below 620 - well it is becoming apparent that more and more lenders are moving away from [...]
Posts under ‘Credit Scores’
FHA Mortgage Insurance Rates Now Risk Based
Major changes go into affect on the FHA loan program on Monday July 14, 2008. These changes are very significant and will impact the affordability of these loans for many borrowers, especially those will less than stellar credit who can’t put 5% down. Basically, almost everybody in todays market.
Essentially, the Upfront Mortgage Insurance Premium (UFMIP)and monthly [...]
Washington Post Doesn’t Understand Credit Scores
The Washington Post is alleging that Senator Obama received a special “discount” when he purchased his home in 2005. This is what is being reported:
He locked in an interest rate of 5.625 percent on the 30-year fixed-rate mortgage, below the average for such loans at the time in Chicago. The loan was unusually large, known [...]
Do a Short Sale or Foreclose? Either Way Your Credit is Shot and It’ll Be Hard To Get a Loan in the Future!
Whether you foreclose, do a short sale or go through a deed in lieu of foreclosure your credit is shot. The extent to which your score falls may differ, but to any future creditor it is all the same. Not only that but when you apply for credit in a few years, its really important [...]
Loan Approvals Depend Entirely on Income Verification
I’ve written plenty about the importance of having a good credit score and maintaining a clean credit report. From getting a job promotion to finding the right spouse, your credit score can play a much more ubiquitous role than ever before. That was then, but this is now. In today’s changed lending landscape your perfect [...]
Errors on Credit Report Can Cost You a Boat Load
Believe it or not credit reports do contain errors. I don’t think any error on your credit report should be considered minor. Because errors in your report can significantly alter your credit score and end up costing you thousands of dollars in the form of higher interest rates, inability to refinance a loan etc. Additionally, [...]
Maintaining a US Credit Report While Living Abroad
Your credit profile and ability to obtain future financing is the last thing on your mind if you’re planning on living abroad for a few years. Many Americans simply pack their bags and go off on their adventure without much thought to how this may impact their credit profile. However, once its time to move [...]
Does a Higher Down Payment Compensate For a Low Credit Score?
A reader reacts to my post titled “Why Lenders Care About Credit Scores” and sends this excellent question:
How much more of a positive effect does putting a greater percentage down on the home purchase vs. a low credit score.
For example, if I have a credit score of 620, but put down 20% down, how much [...]
Will “Forgiven” Debt Affect My Credit Score?
From the mailbag:
If I owe $175K on a VA mortgage on my primary residence and the bank agrees to “forgive” $25K because the best I can sell my house for is $150K will this negatively affect my cerdit rating?
Most likely this will adversely affect your credit. The extent will depend on how the bank reports the [...]
Faulty Credit Reporting and the Growing Trade in Discharged Debt
I see faulty credit reporting all the time. After pulling credit, I (or Aimee) will review the credit report with the borrower. It is amazing how many times we see active accounts which have been discharged during a bankruptcy.
Quite honestly, I’m not sure how much this affects the credit score, but it certainly will not help. Oftentimes [...]
