The Colossal Ominous Credit Score For Home Buyers: It Is Not So Ominous…

Jan. 6, 2010 - PRLog -- Do you think your piece of the American Dream is still out of reach? It may not be with Pillar Property Group. You may be able to purchase a home with an FHA loan with as little as 3% down. You are probably wondering,” what is the minimum credit score for FHA loans” and “what if my credit is not that great.”

Well, there are a couple points of credit scoring I would like to inform you about:

1.   Checking your own credit will not hurt your score. It is only a “soft inquiry” and creditors do not see them.

2.   There are hundred of scoring models when examining your credit score. One lender such as Precision Funding might even use a different scoring model for each type of loan it offers.

3.   Closing older accounts can hurt your credit score believe it or not. When you close an account, it raises the ratio of your debt to your available credit, which is a negative thing and one of the key factors considered in most credit scoring models.

4.   You credit score is not locked for a definite period of time. It is the information of your report that determines your credit score. Not the number itself.

5.   Co-signing for a loan will affect your credit score. You are treated as equals in this matter; therefore, credit reporting agencies place co-signed loans on both individuals credit report.

6.   Realistically, you can not dispute negative information despite credit repair companies claims.

7.   You have three credit scores lenders have at their disposal: (Experian, TransUnion and Equifax). Your score may be different on each of them because some lenders only report to one or two of them.

8.   There is no such thing a joint credit for spouses. Credit is determined on an individual basis. If you are sure one spouse’s credit is badly damaged and yours is good, you can still apply for that home loan.

9.   Shopping for the best credit rate will not hurt your credit score. Most credit agencies can tell you are shopping for interest rates rather racking up the credit card debt.

10.   Credit counseling hurts my chances. Potential lenders look this positive step in improving credit habits and behavior.

Well, technically FHA has no minimum credit score at writing of this article. What has happened is that FHA lenders in Pennsylvania and throughout the country have set their own credit score standard for FHA mortgages which is currently at 620.

As a bit of useful information, Precision Funding will provide financing below the typical 620 FICO score. For more information of the program from Precision Funding, please call (717) 779-1530.

There are other options to individuals, who wish to own a home. For instance, they could lease a home of their dreams with the option to buy once their credit score meets scoring criteria for lenders. “You should look at credit counseling as a solution to this problem if this is the case,” said TJ Noye, Precision Funding.

You can still own a piece of the American Dream in this economy. You just need to find out whom to talk to when it comes to financing that dream. Also, do not be afraid of that colossal ominous credit score that floats above your head. There are ways to make it not so daunting.