Cory Kessenich

Understanding credit requirements for buying a home can save a lot of frustration and disappointment for first time home buyers. The following list represents some of the most common pitfalls for buyers and offers advice to overcome it.

1. Get your own copy – Before talking to a mortgage broker you should look at your credit report. Contact the top three credit agencies, Transunion, Experian and Equifax and ask for your report. You can also pull your own free credit report that was made available through the FACT act.
   
2. Fix mistakes first – Based on the sheer volume of data processed by the three credit agencies there is a lot of room for error. Make sure each item is correct. Look over your address history, work history and correct spelling of your name. Also look over the various accounts and make sure they are all yours.
   
3. Look at problem areas – There are a handful of things people need to do in order to have a high credit score. Pay bills on time, don’t have too much debt, and have a good mixture of types of debt. If you are struggling in one area then fix that problem in order to see your scores increase.
   
4. Pay down loans as much as possible – When you get ready to apply for a mortgage loan the lender will look at your current debt to see if you can handle the addition of a home payment. The lower your debt, the more house you will qualify for.
   
5. Give yourself some time – You will not correct your credit score in a day or a week. It takes a few months of consistent payment history, along with paying down balances, to have a significant impact on your scores. Stay at the job and don’t get discouraged.

The Wisconsin VA loan is a great program for eligible people who served in the service. It allows them a chance to purchase a home at a great rate and reduces the financial burden of buying a home.

No Down Payment
For people that qualify for VA financing, there is no requirement for a down payment. On top of this, the seller can pay all of the closing costs associated with the loan if the contract allows it. This means that a person can buy a home with a VA loan with absolutely no money out of their pocket.

Easier Credit Restrictions
The guidelines concerning a person's credit rating is not as strict compared to conventional loans? Veterans will find it is far easier to qualify for the VA mortgage than the typical conventional loan.  The VA rules usually focus on just the past 12 months of a person's credit file to make things a bit easier for the borrower.

The Funding Fee
The VA charges a funding fee on all loans to provide necessary funds for the VA program. This fee is usually added to the overall loan amount, providing the borrower with the opportunity to pay the fee over time rather than pay it all up front.

Assumable Loans
It is possible to sell a home financed with a VA loan to another eligible veteran by assuming the loan. This means that the new owner has to meet certain requirements. However, it does not require the new buyer to obtain a completely new loan. They just take possession of the home and begin making payments on the existing loan.

Current and Former Military
At one time the only people who qualified for the VA mortgages were people that had been honorably discharged from the service. Changes have been made over the past several years to allow current active military, as well as members of the guard and reserve, to qualify for the program as well.

For additional information see our VA loan page on our site or to see if you qualify, contact me below or apply online.

Times have changed drastically over the last several years. Many people have been forced to move back home with their parents after college due to a lack of job prospects or too much debt. Other people have made the choice to have their parents or other older relatives move in due to health problems. But these issues usually require extra space that may not be readily available. Thanks to the FHA 203K loan, people can now finance the home addition that they need.

Basics of FHA 203k Loans

Up until recently, people that wished to add on to their home or make extensive remodeling repairs either paid cash for the project or borrowed money from the equity in their home. The problem arose when people did not have sufficient equity to cover the excess cost. But the FHA 203k will allow people to refinance their existing loan and get an extra $35,000 to use for home repair or remodeling ($35,000 max for the streamline FHA 203k program. If you need more, ask about the full 203k).

FHA 203k Loan Requirements

The FHA 203k loan is set up in such a way that the borrower, as well as the lender is protected throughout the whole process. In order to get approved for the loan a licensed contractor will need to submit an estimate of the anticipated renovations. An appraiser will need to review the proposal and make an estimate as to the new value of the property after the remodel is complete. As an extra precaution the money used for the rehab work will be held in escrow until the contractor is finished.

For those individuals that have simply outgrown their existing space, this is a very affordable way to stay in their current home and make necessary additions. People that are now caring for elderly relatives in their own home will also appreciate the ability to use some funds to increase accessibility to the home for handicapped persons.

Please visit our FHA 203k loan page for additonal program details or contact me below.