First, there are a lot of different circumstances in each persons history that make it impossible to create a document that addresses all possible scenarios. Therefore, the best way to answer this question for you is to hear your story, get to know you personally, and give you real world answers to if you can get a home loan, or if not, what it’s going to take.
There is a lot of misinformation out there about what it takes to get financed through a bank. There is a high possibility you may qualify and don’t think you do. Even if you do not qualify, don’t worry, we’re still here to help so keep reading. Here’s the real scoop of what it takes to get a mortgage in 2014.
- A FICO credit score of 550 or higher.
- No late’s on trade lines within the last year. The bumps on your credit report must be older than a year, this shows a pattern of upward progress.
- No late’s on your monthly rent. The bank will ask to see rental history, is must be clean. Old broken leases or late payments should not be a problem, but again we need to show a pattern of upward progress.
- Must be current on any federal debt, ie. tax liens and student-loans.
- Money saved in your bank accounts. It really helps if we can show you have the ability to save. It’s also a big plus if you have a 401k, retirement accounts, or other savings accounts.
Bankruptcy: You can actually get a FHA mortgage while in Chapter 13 showing good timely payments toward the bankruptcy or 1 year after discharge. Chapter 7 requires 2 years after discharge. NOT 7 years like most people think.
Previous Foreclosures: You can actually get a FHA mortgage immediately if you can show extenuating circumstances. If not the waiting period is 3 years.
Any judgement will need to be paid in full.
Don’t know what your credit score is? We are big fans of https://www.creditkarma.com. It costs you nothing to get your score, no credit card needed. Get your score and if it’s 550 or higher, give us a call. I think we can get you into a home you can actually own today. To ensure that you don’t go into debt, call an association management company.
If after reading this you feel you may meet the criteria we encourage you to apply through our preferred lender.
If after reading this you realize you have a bankruptcy, judgement or other issues that will prevent you from getting a loan now, that’s okay. We are still here to help. Give us a call, let us know you have read this information and we will get you more information on the rent to own program and help you get into the home of your dreams that way.