Have Your Credit Monitored for FREE

July 8, 2008 by Leave a Comment

Recently, one of the big three credit bureaus, Transunion, settled on a class action lawsuit for re-selling consumers private information.  The settlement includes providing consumers with free credit monitoring or a possible cash payment…but you must apply for this benefit by September 24, 2008.  You are eligible if you have obtained credit from January 1, 1987 to May 28, 2008–including mortgages, car loans, credit cards, etc.

For more information, or to apply, visit www.listclassaction.com.

I encourage you to take advantage of this opportunity.  It just takes a few minutes to sign up!    This is especially important as banks are cutting back credit limits for credit cards and home equity lines of credit which may greatly impact your credit score.  More on that to follow.

Filed Under: Credit Scores and Reporting

Do you need great credit and a big down payment to buy a home?

May 28, 2008 by Leave a Comment

Cindy, one of my clients that I helped finance their first home, emailed me this question:

"I know home loans have changed a lot but is it true that you can’t get a home loan with a credit score under 700 and 20% down?"

Not true.  Although I’m sure it feels that way and I’ve even heard some in the media make similar wrong statements…it’s no wonder you would have this question.

Having a high credit score and significant down payment certainly doesn’t hurt a home buyer.  It is true that many of the mortgages of recent years are no longer available.  And actually a 700 credit score pays more for their interest rate than someone with a 720 credit score now.   Conventional underwriting guidelines continue to tighten during these historic times.

FHA continues to be a very strong option for home buyers and home owners needing to refinance.   Even when FHA begins to implement risk based pricing for mortgage insurance, as reported by Kenneth R. Harney, borrowers can still have 3% down and lower credit scores:

"On 30-year mortgages with down payments of 10% or more, applicants with FICO scores above 680 will qualify for the lowest premiums — 1.25% of the loan amount upfront and annual renewal premium payments of 0.5. Borrowers with down payments of less than 5% and poor credit scores — FICOs ranging from 500 to 559 — will be charged premiums of 2.25% up front and 0.55% annually. All borrowers will continue to receive the same market-based interest rate. Under the current system, borrowers pay uniform 1.5% premiums upfront and 0.5% annually."

One thing to keep in mind is that borrowers do need to have clean credit (no lates) for the past 12 months.  And even if FHA allows a 500 credit score, many lenders have their own underwriting guidelines that may not allow it and they have higher rates for lower credit scores.

To learn more about FHA, please check out my FHA Resource Center or contact me.   Mortgage Master is proud to have our Full Eagle.  We are a direct endorsed HUD lender…what does this mean to you?   We have an FHA underwriter on site at our King County office…we’ve been providing FHA insured mortgages to Pacific Northwest families for over 30 years.   

Filed Under: Credit Scores and Reporting, FHA, Underwriting and Qualifying

Improving Your Credit Score

March 27, 2008 by 2 Comments

credit

With every point of your credit score being more crucial than ever, I thought it would be a good time to share some tips on how to improve your credit scores beyond paying your bills on time.   If you are considering obtaining a mortgage within the next 12 months, you should meet with your Mortgage Professional to help advise you on this process.   Some steps in repairing your credit may actually temporarily lower your scores (such as paying off a collection).   What steps you should take depends on how soon you plan on buying a home or refinancing.

[Read more…]

Filed Under: Credit Scores and Reporting Tagged With: ,

It’s Official: Zero Down is Gone

March 21, 2008 by 6 Comments

Iceage_2Unless you’re eligible for VA financing within the conforming loan limits, 100% LTV financing (aka "zero down") is no longer available in the conforming mortgage markets.   

The following products are extinct:

  • Fannie Mae Flex 100
  • Freddie Mac 100
  • My Community Mortgage 100
  • Home Possible 100

If you are short on down payment with credit scores below 680, you should consider FHA financing, which is not as credit score sensitive as conventional programs.  Fannie Mae Flex 97 is still available as well as Home Possible 97.  Both conforming programs allow for 3% down.

Home buyers should also plan on having "reserves" after closing.  The amount of reserves may vary depending on the program from 2 – 6 months of proposed mortgage payments for owner occupied when it’s said and done.   Real estate agents, your first time home buyers may need help with closing costs from Sellers…if they’re willing…in order to meet the reserve account conditions. 

We’re rolling back the underwriting guidelines…not all the way back to the ice age…but close!

If you’re considering buying a home or refinancing, meet with your Mortgage Professional sooner than later so you have time review your credit and consider your options.

Filed Under: Credit Scores and Reporting, Current Affairs, FHA, First Time Home Buyer, Residential Purchase

The Mortgage Porter Quarterly

March 9, 2008 by Leave a Comment

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The first issue for 2008 of The Mortgage Porter Quarterly is being mailed starting this weekend. 

This snail-mail newsletter features:

  • Your Credit: Tips to Score Big
  • Last Minute Tax Changes for 2007
  • What’s New with Rhonda (a true read if you’re having troubles falling asleep)
  • My (and my hubby’s) favorite recipe for Huevos Rancheros (pictured above).  YES…I made that. 
  • My Mortgage Adoption Campaign
  • Credit Check Up (this issue, I recommend visiting www.annualcreditreport.com and pulling your free copy from Experian.  (You’re allowed 1 free copy from each bureau annually).
  • And much, much more.

Would you like to be on my snail-mail list and receive The Mortgage Porter Quarterly? 

Confession:  it’s really not a quarterly.  I only mail this out three times a year (currently).  I didn’t want to call my newsletter "The Mortgage Porter Thirdly".

Filed Under: Credit Scores and Reporting, Financial Planning, Just for Fun, Mortgage, Recipes

New Mortgage Porter Feature: Weekly Tips

February 6, 2008 by Leave a Comment

Are you considering buying a home or refinancing in the future?  You can now sign up to receive weekly email tips on home buying, preparing to refinance and credit scoring.  Simply click on the links I’ve provided on the left side of Mortgage Porter under the green Mortgage Weekly box at Favorite Links. 

It’s simple, free and I won’t hound you (unless you want me to)!   

Filed Under: Credit Scores and Reporting, Refinance, Residential Purchase, Tech/Tools of the Trade

YOU Magazine and MMG Weekly Now Available

January 12, 2008 by Leave a Comment

January’s issue of YOU Magazine is now available featuring 7 ways to make the New Year great including:

As if this wasn’t enough, this week’s Mortgage Market Guide Weekly is an absolute must read covering what’s going on in the mortgage industry and why if the Fed cuts rates, mortgage rates likely increase.    This issue of MMG Weekly also addresses how to freeze your credit in the event of ID theft and what’s coming up on the economic calendar.   

Mortgage Market Guide and YOU Magazine are just a few examples of the tools I invest in for my mortgage practice as my commitment to you.   It’s very important to me that my clients fully understand mortgages: the largest financial obligation on the most significant investment they may have in their lifetime.

Filed Under: Credit Scores and Reporting, Financial Planning, Just for Fun, Recipes

Can I get approved for a 400,000 home loan with a 600 credit score?

November 6, 2007 by 4 Comments

Yes…quite possibly!   The title of this post is a question that was entered as a search that found Mortgage Porter.  Someone could buy a $400,000 home with a 600 credit score if:

FHA Scenario Possibility

  • No late payments or derogatory credit in the past 12 months.  FHA insured loans do not use credit scores.
  • Base loan amount at FHA loan limit (assuming King, Snohomish or Pierce Counties):  $362,790.
  • Just shy of 10% down or a minimum of 3% down plus closing costs with a 6% seller contribution.

With conforming, if the other qualifying factors (income, assets, employment, down payment) are strong, the borrower may still qualify for a mortgage. 

At the very least, if your credit score is 600 and you’re considering buying a home, I suggest contacting a Mortgage Professional to have your personal scenario reviewed.  The higher your credit score, the better your rate may be for a mortgage and a qualified Mortgage Professional should be able to advise you on how to improve your credit rating.

Filed Under: Credit Scores and Reporting, Mortgage
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