Effective May 21, 2010  – Housing and Urban Development (HUD)  has issued a one year temporary waiver of the  “flipping rule” permitting FHA financing of a resale within 0-90 days of the seller’s acquisition of the property.

Tags: banking, budget, Credit Education, home purchase, homebuyer, low downpayment, money, Money Tips, Real estate, savings

Today credit is more important than ever. Financial institutions are supposed to loosen their lending requirements, but the opposite has happened. As recently as 18 months ago,  you could qualify for prime lending with a 720 credit score. Now,  in most cases, you need at least a 750 credit score.

As lending requirements go up, so must your credit knowledge. When it comes to credit what you don’t know will hurt you. Below I have listed  five reasons I believe consumers do not get the credit help they need.

1. Credit denial. “My credit is not THAT bad.” Your credit may not be THAT bad, but if your score is not a 750, you need to work on it.

2. Procrastination. “I’ll get around to it.” The fact is that many consumers do not get “around” to working on their credit and the financial damage continues.

3. Timing. “I am not going to apply for credit, so I can wait to fix my credit.” Credit restoration can be a long, drawn out process. If you wait until you need it, it may be too late.

4.Affordability of credit repair. “I can’t afford to pay someone to fix my credit.” The fact is, there is nothing a credit repair company can do for you that you cannot do yourself. If you are not going to take the time to work on your own credit, you cannot afford not to get help. Which brings me to number five.

5. Underestimating what your credit is costing you. Even with today’s rates you could be paying more than over $3400 per year in interest on a $200,000 home if your credit score is a 620 versus a 760. That’s OVER $280.00 per month. Could you use an extra $280.00 per month? For more information see mortgage calculators on banrate.com and myfico.com.

Do not play into the hands of the banks by not working on your credit. If you do not have the time, knowledge, and patience to work on your own credit, hire a professional. Working with the right professional will save you thousands of dollars in the long term.

Tags: Credit Scoring, credit tip, FDCPA, homebuyer, Money Tips, saving, savings

As a Credit Specialist, I am often approached with questions about credit cards.  Having credit cards are essential in maximizing a good credit rating.  Credit Utilization is 30% of the credit score and the mix of credit you have is 10% of your credit score. If you have no credit cards you are missing out on major components of the credit score.  What you need to know:

• Ideally you want to have 3-4 major credit cards.
• Major credit cards are best. You don’t need to have a bunch of department store charge cards.
• Keep the balances down to around 10% of available limit. If you can’t manage that, keeping balances at 30% of limit is still acceptable.
• DO NOT exceed 50% of available limit or your credit score will take a BIG hit.
• Keep credit cards in your name separate from your spouse.

Here’s what I suggest:

• Keep credit card spending within limits described above.
• Have a spending plan. For example: I will use XYZ credit card  to purchase only gas for my car this month.
• Pay your bill on time.
• Pay the balance in full if you can when you get the statement.
• Spread the balances out among your cards, but keep one for emergencies.
• Make sure you use your card at least once every three months so that it will not go unrated on your credit report.

In conclusion, you MUST have credit cards to optimize your credit score. Credit cards are not the problem.  It is the misuse of credit cards that create problems.

Tags: budget, credit, Credit Scoring, credit tip, homebuyer, money, saving

I was talking to a realtor friend today who lives in Atlanta. We were reminiscing about the days when real estate was a stable, viable commodity. You could have never told us five years ago that the housing market would be in the mess it is in today. But as always, one’s loss is another’s gain.

I just received an email today notifying me that foreclosed homes offered by the  Housing and Urban Development Department (HUD) are selling for $100.00 down. This is bittersweet because it is a great deal for someone. But, on the flip side,  some family has lost their home.

The wonderful thing about America is that we can always rebuild. If you have lost your home, be encouraged because there is help available. If you have managed to survive “ the credit crunch”,  and can buy a home in this economy, it is important that you work with a professional that specializes in  foreclosed homes. 

For more information contact the author at 317- 410-4110 or vfinch@intcredit.info.

Tags: credit, homebuyer, low downpayment