Thursday, May 26, 2011

Need to improve your credit score in 30-45 days to buy a home?? READ THIS....

How to increase your credit score by 10-100 points

To improve your score you have to know where you currently stand. You can get 1 free report a year to see what is reporting on your report. To know exact FICO scores you will have to pay. Here is exactly what you need to do.

- Do you have a Judgment? If so pay it off immediately! Go to the courthouse directly and ask for a receipt. After paying it off send a copy of the receipt to each credit bureau to show that it has been paid.

- Do you have a credit card? If so make sure that your balance remaining is only at 10% of your limit. No more than 30%. For example if you credit limit is $1000.00 you should only have a balance of $100.00. Anything over 30% drops your credit score. If you do not have a credit card than you should look into getting one. If you can’t qualify for a credit card look into getting a secured credit card. A secured credit card is where the bank issues you a line of credit equal to what you give them in a security deposit.

- Do you have any installment loans? This would be loans such as cars, personal loans, mortgages and/or student loans. These types of loans increase your score faster. Especially over time this shows you are consistent and responsible.

- Do you have old accounts that are still showing active? If so close those accounts! The more lines of credit you have open could hinder your scores.

- Do you have items reporting incorrectly? If so dispute those items through that credit bureau. This could help increase your score drastically! Find out the credit bureau that is reporting this wrong and go to there website. You can either dispute it on line or fill out their dispute form and fax it over to their office. They will ask for a brief explanation and if the item has been paid they may ask for proof so be prepared!

Doing these items can increase your score in the next 30-45 days! If you need help please feel free to contact me. I helped 4 home buyers last year increase their scores so that they can buy their dream home!!


Low Credit Score Financing Options

Do you have less than perfect credit? Do you have a credit score between 600-640? You may be eligible for the OHFA program. OHFA has multiple programs available for the first time home buyer.

To qualify for an OHFA loan, you must also qualify as a first-time homebuyer.

•Someone who has never owned real estate.
•Someone who has not owned or had an ownership interest in his/her principal residence in the last three years.
•Be a qualified military veteran.
•Purchase a home in a target area.
Check out our Target Area Loan Program.
•Be creditworthy. Minimum credit scores may apply.
•Have a signed Purchase and Sales Agreement for a qualifying property.
•Qualify for the loan being requested. Lenders will assess your ability to afford a home by considering income, assets, job stability, liabilities, and other criteria.

OHFA offers a down payment assistant program as well! If you need help with the normal 3.5% down you may be eligible for the grant money!
If you qualify for one of OHFA's home loan programs, you can choose to take advantage of the Down Payment Assistance Grant.

•OHFA will issue a grant in an amount up to 2.5% of your home's purchase price.
•You can use the grant to pay for the down payment, closing costs, or other prepaid expenses incurred prior to closing. Keep in mind that while the grant will greatly reduce your expenses, you may still be required to pay for some costs out of pocket.
•If you take advantage of the grant, your mortgage interest rate will be .5% higher than OHFA's current mortgage rates.

Stop worrying about your less than perfect credit score and down payment! Call me today to get started on the right path! As you can see there are options available!!I have a process in place to help you find your dream home in 30 days or less!!
Molly Hay 614-581-2086

Can I borrow more money than the purchase price of the home to make repairs?

This is the most common question I get from buyers today. The answer is YES!! There is a loan program called the 203K Streamline Loan. This loan is designed for the FHA buyer in mind. If you are looking at properties that are distressed and in need of repair than this loan is an option for you. FHA's Streamlined 203(k) program permits home buyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, home buyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.

Luxury items and improvements are not eligible as a cost rehabilitation. However, the homeowner can use the 203(k) program to finance such items as painting, room additions, decks and other items even if the home does not need any other improvements.

This program was designed to let the FHA buyers buy homes that are in need of repairs without the worries of a complicated loan program. This loan offers low interest rates, little down payment options, and 30 year fixed rates!

-Owner Occupants Only
-There must be a minimum of $5,000 in repairs needed
-The work must be completed 30 days after an executed agreement
-Single Family Homes and one to four unit dwellings are eligible
- HUD Homes are allowed. However, the property must be advertised that it is eligible for financing with a 203(k) loan

To see if you and the home you are looking at are eligible for this program call Raub Warner at The State Bank (614) 571-0626. If you are in the beginning stages of owning a home and this program sounds like something you are interested in, Please contact me at (614) 581-2086. I will send you a FREE list of eligible homes!