Archive for Credit
The Basics of A FHA Loan
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The Federal Housing Administration or FHA has provided a way for low to middle-income earners to obtain a mortgage loan, when they might otherwise not be able to qualify for a regular mortgage loan. The basics of an FHA loan guarantees that they will insure the lender against any default of payment. This gives the lender the assurance that they will be recouped the full amount of the loan should anything happen and the new homeowner not be able to pay back the loan.
The first step in securing an FHA loan is to use a mortgage broker who deals with FHA loans. Not all do, but there are a number of brokers who are well versed in approaching lenders for this type of loan. They know the requirements and can often help to push a loan through for a new homebuyer fairly quickly providing all the conditions are met.
While an FHA loan is not for everyone, there are quite a few benefits that make it an ideal choice for many people who would like to own their own home but do not have the cash reserves, or a good enough financial score to qualify for a regular home loan. Perhaps one of the biggest obstacles to many people who would like to own their own home is that they simply do not have enough cash reserves for a down payment. A regular mortgage loan often requires a very minimal down payment, sometimes more depending on the person’s FICO score. You can usually apply for an FHA loan with as little as a three percent down payment. Coupled with this, is stipulation that the loan amount that is approved is relative to the cost of buying a home in your area. Thus the loan amount that is approved is usually not that high, just enough to buy a home similar to those where the person already resides. Consequently, the 3% down payment is usually quite a reasonable amount.
There are no actual income limits when applying for a loan, although you do need to have a regular source of income; it just does not need to be a lot. You also need to prove that you have a good debt to income ratio, in other words that you are not spending more than you are earning. While your credit score may be taken into account, it is not a major consideration when applying for an FHA loan. In fact, you can qualify for a loan as soon as two years after declaring bankruptcy.
There are also other programs associated with FHA loans that can help subsidize home repairs and improvements, as well as an easing of regulations such as pre-payment penalties. While an FHA loan may not be ideal, or even necessary, for everybody it does provide many people with the opportunity to own their own homes and thus better their own financial situation. If you are interested in applying for one and you have a regular source of income, your first step should be to find a suitable mortgage broker who can help you secure the loan and advise you on what requirements are needed.
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Keeping Good Credit
Posted by: | CommentsIn life, we maintain those things that we take great pride in-our bodies, our health, our hair, our home, our lawn-you get the picture! Credit maintenance might not come to mind here, but I can assure you, that adding this to your “to-do list” will benefit you in the long run. I realize this seems like no easy task, and that is why I wanted to send you this video tip, to show you how simple it is to maintain your credit. Tune in to learn how this discipline will help you achieve long-term financial health.
So You Don’t Have Credit
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Having credit is like having a golden ticket to financial freedom. But if you have not established credit yet, it’s OK-I can show you where you need to start. Check out the video I have included for you and you’ll learn how easy it is to establish credit and secure your financial future. Take action and implement the quick tips in this lesson and in less than six months, you’ll be on your way to having your very own golden ticket!
10 Credit Myths
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The economy sure has thrown us all for a loop this year, but did you know how many consumers have been taken on a wild ride by those who claim to be financial gurus and credit repair specialists? Far too many have gotten caught in this tangled web, and as your trusted advisor, I am committed to making sure that you are armed with the information you need to protect your finances and your family from such predators. This is why I want to share with you, the top 10 credit myths- so that you can avoid the credit advice that can potentially damage your credit.
Getting The Right Mix With Your Credit
Posted by: | CommentsI have a great tip that I want to share with you today, one that is sure to give you the knowledge you need in order to develop a high quality credit profile, with excellent credit scores! I often find there is a misconception when it comes to the mix of credit that is needed in order to generate excellent credit scores and because this mix makes up a percentage of your actual credit score, I thought you would find this video tip to be highly valuable. Tune in to learn which credit accounts are the ones to have and how you can use them as a tool for financial freedom.
