In this blog, we will cover how to re-establish credit to qualify and get approved for a mortgage. Nearly all mortgage loan programs require borrowers to have a minimum credit score. There are times when a borrower who is qualified for a mortgage and has the ability to repay but does not meet the minimum credit score requirements.
The team at FHA Bad Credit Lenders can help homebuyers how to re-establish credit after bankruptcy and foreclosure so they can qualify for a mortgage. Lenders want to see borrowers re-establish credit after bankruptcy and foreclosure to get mortgage approval. Just passing the waiting period after bankruptcy and foreclosure is not sufficient.
All mortgage loan programs have its own minimum credit score requirements. We will cover how to re-establish credit to qualify for a mortgage. Credit scores increase and decrease depending on credit factors. For example, if you maximize your credit scores, your credit scores may plummet. However, if you pay down your credit balance, your credit scores may skyrocket instantly. We will discuss how to how to re-establish credit after periods of bad credit so you can qualify for a mortgage.
How To Re-Establish Credit After Bankruptcy To Get a Mortgage
The team at FHA Bad Credit Lenders have helped thousands of borrowers learn how to re-establish credit after bankruptcy to qualify for a mortgage. The team at FHA Bad Credit Lenders are experts in guiding homebuyers how to re-establish credit after bankruptcy. In most cases we can help borrowers how to re-establish credit and get their credit scores to over 700 FICO.
You do not have to hire expensive credit repair companies to re-establish credit after bankruptcy. Credit repair companies can do more damage than good. The team at FHA Bad Credit Lenders are experts in helping how to re-establish credit after bankruptcy. In most cases, the team at FHA Bad Credit Lenders can help you get your credit scores to over 700 FICO in less than one year after bankruptcy. There is no charge to repair your credit.
The easiest and fastest way how to re-establish credit after bankruptcy is to get three to five secured credit cards with at least a $500 credit card limit. The minute you get your Chapter 7 Bankruptcy discharge, you should start getting secured credit cards. You should also get at least one credit builder account through your bank, credit union, or Self.com. The higher the credit card limit, the faster you will re-establish credit after bankruptcy.
Minimum Credit Scores You Need To Qualify For a Mortgage
Each mortgage loan program has its own minimum agency credit score requirements. HUD, the parent of FHA loans require a 580 credit score to qualify for a 3.5% down payment home purchase FHA loan. Homebuyers can get approved for an FHA loan with credit scores under 580 and down to 500 FICO with a higher down payment. HUD, requires a 10% down payment for borrowers with under a 580 credit scores, per HUD agency guidelines.
Homebuyers can qualify for FHA and VA loans with credit scores down to 500 FICO. FHA Bad Credit Lenders has no lender overlays on government and conventional loans.
You can qualify and get approved for FHA loans with credit scores down to 500 FICO. USDA loans generally require a 580 credit score. Fannie Mae and Freddie Mac require a credit score of 620 FICO on conventional loans. Traditional jumbo loans require a 700 credit score. Non-QM jumbo loans require a 550 credit score at FHA Bad Credit Lenders. High-Balance FHA Jumbo Loans has the same credit score requirements as regular FHA loans.
How To Re-Establish Credit To Increase FICO Scores
The fastest way how to re-establish credit to boost credit scores to meet the minimum credit score requirements is to get three to five secured cards with at least a $500 credit limit. If you have no credit score, it is because you have no active credit tradelines. By getting three to five credit cards, each secured credit card should boost your credit scores by at least 30 points.
If you have no credit scores, it is because you have no credit tradelines. Just adding secured credit cards, you will instantly get a credit score. FHA Bad Credit Lenders highly recommend you get three to five secured credit cards with at least a $500 credit limit. The higher deposit you put on secured credit cards, the better your credit profile is.
If you have maxed out credit card balances, paying down the credit card balances down to a 10% credit utilization ratio will increase you credit scores. Having high credit card balance will lower your credit scores.
How To Re-Establish Credit To Get The Lowest Rates
The fastest way how to re-establish credit to get the lowest rates is to pay down your revolving debt balance. By paying down you balance on all of your credit cards, it will skyrocket your credit scores. The lower your credit card balance, the higher your credit scores. Once you pay down your credit card balance, your loan officer can do a rapid rescore where the new credit card balance gets updated in a matter of three to five days.
FHA Bad Credit Lenders are mortgage brokers licensed in 48 states including Washington, DC. We have a national reputation for being able to help borrowers with credit scores down to 500 FICO. We are available 7 days a week to take calls and issue pre-approvals.
If you need to get pre-approved for a mortgage but need to re-establish your credit, feel free to contact us at FHA Bad Credit Lenders 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. The team at FHA Bad Credit Lenders is available 7 days a week, evenings, weekends, and holidays.
