Having bad credit no longer means that you cannot get the financing you need, or that you have to accept less than favorable terms. Because the loan is insured by the Federal government, you will get the loan you need, at the terms you want.

• No minimum credit score - FHA does not have a minimum credit score requirement. The FHA underwriter will evaluate the entire credit profile to determine the borrower’s likelihood of repayment. Past credit issues may be overlooked if new credit has been re-established with on time payments for at least 1 year. Also, other compensating factors may apply.
• Bankruptcy okay - Chapter 7 bankruptcies are allowed if discharged over 2 years ago (or 1 year with extenuating circumstances). Chapter 13 bankruptcies are allowed with a minimum of 1 year of on time plan repayment and trustee approval.
• Late payments – Late payments made over one year ago can be ignored if you have been current on your bills for the past 12 months.
• No credit, no problem – If you have no credit currently, we can use alternative credit to get you approved. That means that we can use your utility bills, school payments, almost anything paid monthly and on time for at least 1 year to establish your credit and get you approved.

Unlike traditional loans, FHA loans do not penalize you for credit issues in the past. You can get the same great terms as everyone else. However, if you feel that your credit will not qualify currently for an FHA loan, or you want to work to improve it, you can work with a credit repair company. They can work with you to try to remove incorrect items that are negatively impacting your score. These programs generally take between 45-90 days, and can have a significant impact on your credit score. The company we approve of is Lexington Law. While Lexington Law does charge a fee for their service, the amount you will save in interest over the life of your mortgage, car loans, and credit cards vastly outweighs this fee. You can visit them here to sign up. If you do sign up, please let your FHA Specialist know that you are working with them to improve your credit.

Remember, FHA loans never have a prepayment penalty, teaser rates, or interest only payments that can reset and increase you payment. That means that you can qualify for a secure 30 year fixed at a very low rate. Apply now to speak with an FHA specialist who can show you how an FHA loan can work for you.

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