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Home Prices Continue To Fall With home prices continuing to fall across the board, many people are looking to take advantage of this and also tae advantage of the low mortgage rates at the same time. There is a lot of interest, and endless amounts of people that would love to buy a new home, but the strict lending guidelines are limiting the number that can actually take advantage of the ridiculously low home prices. With the housing inventory at an all time high and prices at record lows, mortgage lenders are offering the best rates that the current generation has seen. They are sticking to their guns in regards to the underwriting guidelines, and a good credit profile along with documented income and assets are required. These are known as full documentation mortgage loans, and there is no way around them as there was in the past. So, what kind of credit score is required for a traditional FHA mortgage these days? As a rule of thumb, most lenders need to see at least a 620 middle score and a clean credit payment history over the past few years. They will pull all three credit bureaus: Experian, Equifax and Trans Union and discard the highest score and the lowest score. The middle score is the one that will be used to qualify for the mortgage. If you have had a late payment over the past couple of years many programs will then require at least a 640 middle score. If there are recent derogatory items within the past six months this will usually disqualify you from the mortgage regardless of what the credit score is. The debt to income ratio guidelines can vary form lender to lender, and there may be other stipulations and requirements depending on the loan program your mortgage broker has found for you. If you are considering making a home purchase it is a good idea to get a free copy of your credit reports yourself, so there is not a hard inquiry placed on your credit reports. You can then present this to your mortgage broker and have him or her review your credit and let you know if they think you will be approved, or if you need to do some work on your credit before an approval would be granted. They should be able to give you a fairly accurate answer based on the current guidelines and programs available. If your credit score is not up to par and if you need some extra points in order to qualify for a mortgage then you may want to look into credit repair. This is a service that can clean up your credit reports, which will result in a better credit profile and increased credit scores. There is no such thing as a bad credit mortgage as there was back six years ago. There were mortgage programs that would offer 100% financing with a low 500 credit score! Those types of mortgages are one reason that the industry fell apart and many lenders went out of business. If your credit score is not at least a 620 then there are no mortgage options available to you, and using a credit repair service is the fastest way to get your credit score improved. It is a great option to take, especially with the low housing prices across the country at the moment.


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