Indiana USDA Home Loan Expert » Credit Score

The Basics of A FHA Loan

Jeremiah Wean — Thu, 19 Aug 2010 22:53:27 +0000

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.

Related posts from Indiana's USDA Home Loan Expert:

Keeping Good Credit

Jeremiah Wean — Mon, 16 Aug 2010 15:49:05 +0000

In 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.

www.youtube.com/watch?v=iW4nERUuVxM

Related posts from Indiana's USDA Home Loan Expert:

So You Don’t Have Credit

Jeremiah Wean — Fri, 13 Aug 2010 15:46:31 +0000

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!

www.youtube.com/watch?v=D2n5W1QMwms

Related posts from Indiana's USDA Home Loan Expert:

10 Credit Myths

Jeremiah Wean — Thu, 12 Aug 2010 15:43:51 +0000

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.

www.youtube.com/watch?v=FkpeyB1tKdA

Related posts from Indiana's USDA Home Loan Expert:

Getting The Right Mix With Your Credit

Jeremiah Wean — Wed, 11 Aug 2010 15:40:37 +0000

I 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.

www.youtube.com/watch?v=zViI4dbTEPI

Related posts from Indiana's USDA Home Loan Expert:

Items to Consider When Disputing Credit Information

Jeremiah Wean — Tue, 10 Aug 2010 15:40:06 +0000

Have you scanned thru your credit report only to find a credit card with a whopping balance that doesn’t belong to you? What about a second mortgage listed, when you only have one loan on your home? Disputing items on your credit report is an absolute must, especially when you find information on your report that does not belong to you or is reported incorrectly. Did you know that if you do not follow the proper measures when disputing, then your efforts can actually have the opposite effect on your credit and your score could actually go down? I want to make sure that the effort and energy that you are putting into the dispute process, produces the results that you deserve and that’s why I wanted to share this extremely valuable tip with you-Disputing Do’s and Don’ts. If you invest six minutes and tune into this quick video tip, not only will you save yourself hours of frustration and unnecessary work but you’ll learn the ten tips that will help you avoid the credit disputing mistakes that many consumers make.

www.youtube.com/watch?v=CKF3hkIDovQ

Related posts from Indiana's USDA Home Loan Expert:

Basic Tips for Disputing Credit Bureau Items

Jeremiah Wean — Sun, 08 Aug 2010 20:17:15 +0000

Dispute, negotiate or wait-these are the action steps you can take when it comes to cleaning up your credit. This can seem like a hefty task and since I realize that credit repair is not your full-time job, I thought I’d help simplify things for you and share a valuable tip. In this video clip, you will learn exactly where to start, whether you decide to open a dispute, negotiate or wait. Watch to learn some basic tips on the commitment involved in opening a dispute, some important resources that will educate you on the ins and outs of credit negotiation, and why waiting will cost you in the long-run.

www.youtube.com/watch?v=3-xXROw21VA

Related posts from Indiana's USDA Home Loan Expert:

Managing Your Debt Strategically

Jeremiah Wean — Tue, 03 Aug 2010 15:48:43 +0000

This may seem like a BFO (blinding flash of the obvious) but did you know that the way you manage your debt has a tremendous impact on your credit scores? What may come as a surprise is that there are some very common mistakes consumers make that can cost their credit score 100 points. I am committed to helping you create an overall debt strategy that leads to your long term financial freedom, and as your trusted advisor, I wanted to share this video tip with you of one of the best-kept secrets for improving your credit score. Tune in to discover what your credit card balance to limit ratio should be and what actions you should take if you exceed the suggested limits.

www.youtube.com/watch?v=dkRsFpQfros

Related posts from Indiana's USDA Home Loan Expert:

What Does Your Credit Really Look Like

Jeremiah Wean — Tue, 18 May 2010 15:56:27 +0000

You’ve seen the multitude of ads, commercials, and I’m sure you’ve even been barraged with mailers too, that say Call today for your free credit report.

But how do you know which, if any, are legit?

As a consumer myself, I often find all the advertisements to be overwhelming and that is why today, I want to share a quick tip with you on the three reputable means to obtain your own copy of your credit report-take action and get a complete picture of your credit situation so that you can have financial freedom!

www.youtube.com/watch?v=nFSORAST3Ec

Related posts from Indiana's USDA Home Loan Expert:

Achieving a Goal Credit Score

Jeremiah Wean — Tue, 18 May 2010 01:47:10 +0000

I’m sure it’s no surprise to you that today’s economy has produced a hostile credit environment, and credit has become a major concern for all consumers. This is why I am even more committed to helping you take control of your financial future, so that not only do you qualify for the lowest possible home loan interest rate, but you are also in position of financial freedom at all times-when financing a car, shopping for insurance, applying for a job, and so on.

With this in mind, I am sending you a quick tip on how to take action so YOU can have control of your overall financial health.

Tune in to this quick video segment and in less than ten minutes, you will learn how to set a realistic score goal, how long it might take to reach your score goal, what a good score is considered to be and how having a good score can save you thousands of dollars.

www.youtube.com/watch?v=7tBW_Fg94Dw

If you cannot view the above video please view at Indiana’s USDA Loan Expert website.

Related posts from Indiana's USDA Home Loan Expert: