Your credit score is an important part of qualifying for a FHA home loan. You credit score does not have to be even close to perfect, but there are certain credit score standard for qualifying for a FHA home loan. Generally you want to have over a 620 credit score to get a FHA loan and preferably over 640. Although it is not impossible to get a FHA loan with a credit score below 620, it is more difficult.
In this post, I want to discuss some ways to quickly raise your credit score to get it where it needs to be to get the best FHA loan rate. We can help you do this as we are experts at analyzing credit reports.
There is a special tool we use called “Rapid Rescore”. It allows us to take any changes made on your credit report and have those changes updated with the credit bureaus in 2-5 days vs. the normal 30-45 days it takes changes to report to the credit bureaus. Below are some common changes you can make to your credit report that will boost you score and we can perform a Rapid Rescore with:
- If you have any credit cards with balances that are over 30% of the credit limits, you can pay the balances down to below 30% of the credit limit and it can provide a huge boost to your score
- Most credit reports have mistakes on them, if you can fix a mistake this can boost your score
- Some borrowers don’t have enough credit or do not have a good mix of credit. If you can add some revolving accounts this can often boost your score, but it may take a little time.
- With collection accounts, often you can can call the creditor and negotiate to pay the collection only if they delete the collection off your report (make sure they delete it and not just mark it a paid collection)
- Becoming an authorized user on a spouse, relative or friends revolving account can provide you with credit history that can help your score
So those are some suggestions to help raise your credit score to qualify for a FHA home loan in California. Please don’t hesitate to give us a call if you would like to discuss getting approved for a FHA home loan.
Regards,
Warm Regards,
Rob Chomentowski
Sr. Loan Officer
858-922-7899
homeloan8@gmail.com
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