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Less Than Perfect Credit? Buy a Home with a Government Home Loans with as Low as a 550+ Mid FICO

February 9, 2014

PMC offers free credit analysis.  Download your free credit report from http://www.annualcreditreport.com and email it to us for review at info@pmccanhelp.com.

Credit Report

Here are the simple steps to cleaning up your credit score:

1. Order your credit reports

Once a year, you should order your credit reports from each of the three largest credit bureaus: Experian, TransUnion, and Equifax. Just ordering one credit report can give you an inaccurate picture of what lenders are seeing when they assess your risk as a borrower and decide whether to lend to you. Creditors don’t report to all three bureaus, so information can vary between the three, including your credit score. You can order your credit score free from annualcreditreport.com.

2. Examine your reports carefully

Make sure to review each of your credit reports carefully. In addition to checking for evidence of fraud or identity theft, double check that the information regarding your credit limit, payment history, and account status(es) are accurate. You’ll even want to check for typos or outdated information. Credit bureaus do not verify the information received by creditors, so it is completely up to you to make sure your credit reports accurately reflect your credit history.

3. Dispute and document

Create a list of any updates or disputes that need to be made to each of your credit reports. When you send dispute letters, include as much detailed information as you can. Include a copy of your credit report which highlights and notes related to the disputes being made. Keep copies of what you send and note the date you sent your disputes. Credit bureaus have to investigate relevant disputes within 30 days.

Note: You can also dispute online at each of the credit bureau’s websites!

4. Solve and dissolve debt

The next step in the process is to start managing your debt better. Some of the tips are obvious: make your payments on time and do not acquire any new debt until you’ve cleaned up your old debt. If you find you’re having trouble making your payments on time or in full, there’s something you can do about that, too! Call up your creditors and adjust your payment to something within your means or change your payment due date to something that works better for your paycheck or bill payment schedules. Keep in mind, however, that decreasing your payment is not a permanent fix because you will be paying more interest on your balance in the long run. You’ll want to keep your credit balances to 30% or less of your credit limit. Make yourself a budget to set yourself up for financial success and stick to it. You can do it!

5. Add stability to your credit file

There are a few ways to add positive information to your credit report. Secure credit cards are a way to rebuild your credit or to start building credit if you have little or no credit history. You can also open up a savings account to show potential lenders you are planning on and able to repay your debts.

You can buy a home with 550+ Mid FICO score with FHA, VA and USDA.  To get the best rates available try to boost your score over 680 for government loans.  Conventional requires a 620+ Mid FICO and for best rates try to boost your score over 720.

Down payment assistance programs require a 580+ Mid FICO and Grants (no prepayment) typically require a 620+ Mid FICO.

Read More: 5 steps to do-it-yourself credit repair

Repairing your credit can take a little bit of work, but it is absolutely within reach. You can also make a commitment to changing your spending habits to ensure you don’t end up in a financial bind in the future that might negate all of your hard work! Remember, it will take time to see your efforts reflected in your credit score, but the time and effort is worth it. Your credit report is a reflection of your total credit history. The longer you show good financial habits, the better!

A great site for credit tips is http://www.myfico.com and to monitor your credit for free try http://www.creditkarma.com.

Email us your loan scenario to info@pmcanhelp.com or give us a call at 800-385-3657!

Visit Our Website: http://www.pmccanhelp.com/

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