California Mortgage News

Don't let a bad credit score stop you from buying a new home.  
If you have not reviewed your credit in a while,  you should.  Be proactive and take control of your credit.  If you are not familiar with how to read your credit profile, seek out a professional who can help you.  At 1st Los Angeles Mortgage, we offer free credit reviews for our prospective and existing clients.  

When reviewing credit, we pull a tri-merge report to review your credit profile with the main three credit reporting agencies, not just one.  This is important because Fannie Mae and Freddie Mac guidelines require a tri-merge credit report.  When qualifying for a mortgage, lending guidelines require us to use the lowest middle credit score from all borrowers.  

While it is true that having a 700 plus credit score will help you get better rates on a new mortgage, we do have mortgage lending programs that do allow for lower credit scores such as FHA.  FHA will allow credit scores as low as 580 along with down payments as low as 3.5%.  Unlike many retail banks, we also work with portfolio lenders that have expanded credit qualifying guidelines that can help as well.  

Don't lose hope if you are credit challenged.  Be proactive and take the first step.  Give us a call for a free credit review.  We will help you on the path to becoming a home owner.

Look for my next post on credit repair!

Posted by Michael Magness on July 5th, 2018 7:49 PM

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