The #1 thing that keeps many California FHA loan home buyers from utilizing 3.5% down FHA home loan to take advantage of buying a home in California at current rock bottom prices are issues with their FHA loan credit. FHA loan credit issues are the #1 thing holding them back from buying a home in the Golden. So this post with discuss some of the major factors with FHA loan credit scores.
Below I will discuss the most important items in keeping a good FHA loan credit score. But even if you think you have bad credit, give us a call or email because we specialize in helping FHA borrowers with credit challenges and assist them to get on the right track to raising their FHA loan credit so they can qualify for a FHA loan in California.
Keys to good FHA loan credit scores:
- Keep credit card balances at 30% or less than credit limits – the FHA loan credit scoring system likes to see this. The fastest and easiest way to vastly improve your FHA loan credit score is to pay balances down to 30%.
- Never be late on anything that reports to your credit – this may seem obvious but it’s not to most people. Car loans, credit cards, student loans, and mortgages all report payment history to your credit. Rent, mobile phone bills, insurance bills, utility bills do NOT report payment history to your credit. So pay the aforementioned first and never miss a payment. Late payments are the #1 item that drags down a FHA loan credit score
- Collections and judgments - if you have collections and/or judgments on your FHA loan credit report, do not pay them off until you speak to us. Paying these off actually LOWERS your FHA loan credit score. FHA loan requirements may only require you pay off large collections and will make you pay off all judgments, but wait until right before closing on your FHA home loan to do this.
We have a tool we use called Rapid Rescore to assist FHA home loan borrowers to quickly raise their credit score to where it needs to be to get a FHA home loan in California. This tool is very effective. What we will do is personally review your FHA loan credit score with you and figure out if there are items we can fix, and then we will use Rapid Rescore to quickly report these items to all the credit bureaus and get an update on your score in 2-5 days.
So give us a call at 858-922-7899 or email at homeloan8@gmail.com if you have any questions about getting approved for a FHA home loan in California.
Below are some of the very latest updates on FHA loans in California:
- FHA loan limits in go up to $729,750 in many areas of California such as Los Angeles, Orange County, San Diego, San Jose and San Francisco. This would allow you to buy a house for $756,000 with 3.5% down
- FHA loan mortgage debt-to-income ratios go up to 56.9% where conventional loans are 41-45% with <20% down. This allows for much more flexibility in qualification.
- FHA loan requirements allow a non-occupant co-borrower to help you qualify for a FHA loan
- FHA loan guidelines only require 3.5% down payment and this can be a gift from a relative
Regards,
Rob Chomentowski
Sr. Loan Officer (and FHA, VA, conventional, Homepath specialist)
858-922-7899
homeloan8@gmail.com
Related posts:
- Collections Have Big Effect on FHA Loan Credit Score in California
- Rapid Rescore a Great Way to Raise Your FHA Loan Credit Score in California
- Credit Score Tips For FHA Home Loans
- Short Sale? Foreclosure? Bankruptcy? Impact On Your Credit Score and Getting an FHA Loan
- Two Key Boxes to Check When Get FHA Loan to Buy A Short Sale in California
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