I am a disabled veteran & live in Illinois. My credit score is somewhere between 720-740 & I earn only 18,000. My husband’s middle credit score is about 594, highest being 660. He earns about 50,000 in a year. They require to take out an FHA mortgage worth 82,000 by making a down amount of 3.5%. Are you able to help me out regarding how can they take out an appropriate mortgage loan?
Solution:
Going through your query, I feel that it would be best in the event you take out the mortgage loan in your name. Together with your score, you can basically qualify for a standard home loan apart from taking out an FHA mortgage. You can receive an FHA mortgage as your necessary loan amount is within the FHA lending limits in Illinois.
The advantages of taking out an FHA mortgage compared to a standard home loan are that you’ll must pay comparatively low closing costs & lower deposit. The qualifying criteria for obtaining an FHA loan are also less stringent as compared to a standard mortgage. In the present times, you can qualify for an FHA loan if your score is over 620. However, you’ll must pay an upfront mortgage insurance premium while closing on an FHA loan. In the event you take out a standard mortgage, then you don’t must pay any insurance premium when you make a deposit of 20%. So, if feasible, try to arrange for the necessary amount in the event you require to take out a standard mortgage.
Since you’re a disabled veteran, you can also take out a VA loan to buy a home of your choice. However, you ought to receive a Certificate of Eligibility to apply for such a loan. The Certificate states an entitlement amount, which is a portion of your mortgage loan that the VA (Department of Veterans Affairs) would guarantee for any service person. As you’re a disabled veteran, you can take help of SAH (Specially Adapted Housing) program. In October 2009, VA Loan Guaranty Service has increased the maximum grant amount (by about 6.3%) obtainable to the eligible individuals.
If your husband desires to take out the mortgage loan in his name, then he ought to raise his score before applying for a home loan. Check out the following tips to know how he can increase his credit score before applying for a mortgage.
• Do not purchase large cost items together with your credit card before applying for a mortgage & closing on the loan.
• Request your credit card company/companies to increase your credit limits so that it raises the percentage of your credit utilization ratio.
• Use your elderly credit cards at least one time in 6 months in order to keep them active. However, pay your outstanding balance every month.
• Order & monitor your credit reports to check for any mistakes. Dispute inaccurate entries if any.
• Don’t close your oldest credit account as it can reduce your credit limit instantly.
• Avoid opening new account till you have closed on a mortgage loan.
In the event you require to take out the mortgage loan immediately, then my suggestion would be to receive the loan in your name for the time being till your husband’s credit score increases to 620. Then, if necessary, you can refinance the home loan & include both your names on the new mortgage loan.
At any point of time, you can take help of mortgage community forums to get answers to your queries. You require to ask mortgage questions in such a forum & the specialists in the field will answer them thus helping you to pick an appropriate home loan.
By: Rashid
Solution:
Going through your query, I feel that it would be best in the event you take out the mortgage loan in your name. Together with your score, you can basically qualify for a standard home loan apart from taking out an FHA mortgage. You can receive an FHA mortgage as your necessary loan amount is within the FHA lending limits in Illinois.
The advantages of taking out an FHA mortgage compared to a standard home loan are that you’ll must pay comparatively low closing costs & lower deposit. The qualifying criteria for obtaining an FHA loan are also less stringent as compared to a standard mortgage. In the present times, you can qualify for an FHA loan if your score is over 620. However, you’ll must pay an upfront mortgage insurance premium while closing on an FHA loan. In the event you take out a standard mortgage, then you don’t must pay any insurance premium when you make a deposit of 20%. So, if feasible, try to arrange for the necessary amount in the event you require to take out a standard mortgage.
Since you’re a disabled veteran, you can also take out a VA loan to buy a home of your choice. However, you ought to receive a Certificate of Eligibility to apply for such a loan. The Certificate states an entitlement amount, which is a portion of your mortgage loan that the VA (Department of Veterans Affairs) would guarantee for any service person. As you’re a disabled veteran, you can take help of SAH (Specially Adapted Housing) program. In October 2009, VA Loan Guaranty Service has increased the maximum grant amount (by about 6.3%) obtainable to the eligible individuals.
If your husband desires to take out the mortgage loan in his name, then he ought to raise his score before applying for a home loan. Check out the following tips to know how he can increase his credit score before applying for a mortgage.
• Do not purchase large cost items together with your credit card before applying for a mortgage & closing on the loan.
• Request your credit card company/companies to increase your credit limits so that it raises the percentage of your credit utilization ratio.
• Use your elderly credit cards at least one time in 6 months in order to keep them active. However, pay your outstanding balance every month.
• Order & monitor your credit reports to check for any mistakes. Dispute inaccurate entries if any.
• Don’t close your oldest credit account as it can reduce your credit limit instantly.
• Avoid opening new account till you have closed on a mortgage loan.
In the event you require to take out the mortgage loan immediately, then my suggestion would be to receive the loan in your name for the time being till your husband’s credit score increases to 620. Then, if necessary, you can refinance the home loan & include both your names on the new mortgage loan.
At any point of time, you can take help of mortgage community forums to get answers to your queries. You require to ask mortgage questions in such a forum & the specialists in the field will answer them thus helping you to pick an appropriate home loan.
By: Rashid
No comments:
Post a Comment