One effective way to get a win-win is to help someone with no down payment money on a for sale by owner home. The seller is more likely to agree to seller concessions when they know they are saving the realtor commission. If you find a 100% loan for the buyer and the seller will agree to 6% seller concessions, the broker can get a fair commission for playing real estate agent and directing the parties to a good title company or attorney to help with contracts and closing. This is often considerably cheaper than FHA because FHA has the mandatory up front pmi of 1.5% although the interest rate may be a little higher than the FHA rate. You might also ask your mortgage broker about companies that offer to have the pmi added to the interest rate where it is tax deductible, or have them do an 80/20 loan to avoid mi altogether.

This special report will show you how you can own a home with very little money down and get low interest rates even if you have had a bankruptcy or less than perfect credit this may sound too good to be true but I encourage you to read all of this report before you make up your mind. Home ownership is one of the key ingredients to building wealth in this country. Take any 100 people at retirement age and here is what you will find.1 in 4 will be wealthy and financially secure 5 will still be working to make ends meet 36 will be dead54 will be dependent upon family or charity for their support by owning your own home you can start to build equity and create wealth. You will also no longer need to put up with noisy neighbors and landlords who don’t fix things and keep raising your rent. But what if I have had a bankruptcy or other credit problems let me make something very clear here, you do not have to put down a lot of money or pay high rates even if you have had a bankruptcy or other credit issues. Bankruptcies are at an all time high. These occur for many different reasons: 1. Divorce 2. Business failure 3. Job layoff 4. Loss of income for work injury 5. Illness 6. Death in the family I recently had a client come in who had filed a bankruptcy and was discharged one year ago. During our meeting she explained to me that she and her husband separated and he was obligated to pay her child support. During their marriage they had made bills which they were able to pay with both incomes. Now, they were separated and she was left with the bills to pay on her income alone. To make matters worse for her, he didn’t pay the child support he was ordered to pay. She was left with no choice but to file bankruptcy there are several major myths that buyers, realtors and even some lenders have about working with buyers who had a bankruptcy or less than perfect credit myth: you have to wait 7-10 years after a bankruptcy before you can get a home reality: since there are two different types of bankruptcy filings, lets look at each one separately chapter 7: you may be eligible for a mortgage two years from the date of discharge. However, if your bankruptcy was due to a situation beyond your control and you have re-established good credit, you may be eligible after only one year from the date of discharge chapter 13: you may be eligible after making 12 on-time payments. Also, you must get a letter from the trustee of the court that purchasing a home will not interfere with your chapter 13 repayment plan myth: I don’t have a lot of money to put down. Reality: if you are able to meet the standards I just mentioned, your down payment will be two %. If you are a veteran you may be able to obtain a mortgage with 0 down. Myth: I will have to pay rates so high that I wont be able to afford it. Reality: we currently offer single digit low interest rates. Currently rates are at the lowest level in almost 30 years. It is a perfect time to buy a home with an affordable payment. So what do I do next you may have heard the term pre-approved or pre-qualified. In the real-estate industry we do things a little backwards. Here is a very common scenario. You the buyer decide you want to move. You call a realtor and start looking for a home. Finally, you find the home of your dreams and your offer is accepted by the seller. Of course you will want to do a home inspection to make sure there is nothing wrong with your new home. The cost of a home inspection is generally $200-$300 and is paid at the time the inspection is done. Next, you will need to go to a lender and get a mortgage. At the mortgage application you will need to pay approximately $469 for an appraisal and credit report. After three or 4 weeks you will learn if your loan has been approved if your loan was rejected you have now lost almost $1000.00 because the fees you paid are not refundable if your loan is rejected. But there is a solution: you can get pre-approved before you even go looking for a home. By being pre-approved you will know that your loan is already waiting for you and all you have to do is find your perfect home. You will also know how much you need to buy the home and what your monthly payment will be. What will I need to do to get pre-approved if you have had a bankruptcy or other credit issue, we will need to know why it happened and why you believe it won t happen again in the future. We will also need to show proof that it was beyond your control and you had no other choice here are some ideas: for spousal abuse, provide police reports for medical bills, get an ex-parte order if you had a work injury, provide proof of workers compensation, a doctor or employer note, or a letter from workers compensation attorney stating the date your first benefit was received and amount for job loss, provide proof of dismissal, a lay-off notice, or unemployment office records for a business failure, provide tax returns for a most recent year if self-employed, and proof that you are no longer self-employed, such as current pay stubs and job verification for a divorce (divorce itself is not an acceptable separation agreement reason for bankruptcy; however, if debts were divorce decree incurred with two incomes and now only one, bring w-2 s or 1040 for most recent year filing jointly pays, it can be a compensating factor) for not receiving child support, bring a court order for child support and a printout from child support enforcement office showing history and arrearage your next step is to call and schedule a free one hour consultation and get the process started during this meeting we will discuss the mortgage programs that will best meet your needs. We will also try to make this program fit your needs and comfort level for a monthly payment and the amount you want to use to purchase your new home. Also during this meeting we will run a full credit report. This is an extremely important part of the process. You may have heard horror stories about people who bought a home, applied for a mortgage and were told by their lender everything looked good. Three weeks later, their loan was denied because some bad credit showed up, that was not on the credit report during the first meeting why we wont let this happen to you there are three major credit reporting agencies in the united states: Equifax, trw and cbi. When a lender runs a free preliminary credit report for you they will run one of the three agencies listed above. The problem is that not every creditor will report to the same credit agency. For example, your visa card may report to cbi; your store charge card may report to Equifax; and your credit union may report to trw.during our meeting, we will want to run a full three agency credit report. This will allow you to know exactly what will be on your credit record. This is the same report that could be used when you purchase your home, so you may not need to pay for it again. If you have had a bankruptcy or other credit issue it is very common to have bills show up on your credit report as past due or behind, even if they were included in your bankruptcy or paid off in full. By having a full credit report, these errors can be corrected so you can get approved faster call now to schedule one hour free consultation

inquiries only account for 10% of your credit score, but inquiries can lower your score enough to put you in a different credit tier that may increase your interest rate or reduce the maximum loan-to-value that you can receive.

Longer the average age of your open credit accounts, the better. An average age of 7 years will give you a better score than an average age of one year. Keep older credit cards open, even after you pay them off. If you are considering opening a new low rate account and transferring your balance from a higher interest rate account, first contact the company that has your existing account. Tell them of your intentions and ask if they will match the rate of the potential new account. They may not, but you have nothing to lose by asking.

There are mortgage options for those with mid 500 fico scores, however they come with stricter guidelines and higher interest rates. It’s important to start improving your score by paying your bills on time and keeping your credit card balances below 50% of your credit limit’s. Don’t close out old credit card accounts since they help define your credit history.

When considering closing some of your accounts, you should know that older accounts help your credit score. When possible close newer accounts first. If a newer account has a lower interest rate or if you receive an offer for a card with a lower rate, contact the company with your older account. Tell them why you are considering closing your account and ask them to match the other companies rate and terms.

The information that impacts a credit score varies depending on the score being used. Credit scores are only affected by elements in your credit report, such as: * number and severity of late payments * type, number and age of accounts * total debt * recent inquiries if a business card/corporate card or gas card does not appear on your credit report, it will not affect your score. Credit scores do not consider: your race, color, religion, national origin, sex or marital status. U.s. Law prohibit’s credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the consumer credit protection act: * your age * your salary, occupation, title, employer, date employed or employment history. However, lenders may consider this information in making their approval decisions. * Where you live * any interest rate being charged on a particular credit card or other account * any items reported as child/family support obligations or rental agreements. * Certain types of inquiries (requests for your credit report). The score does not count consumer disclosure inquiry

Learning the art of managing your use of credit can pay big dividends when it’s time to get a home mortgage. The difference between a good credit score (680 and up) and a fair one (630 to 600) could be huge in terms of the interest rate that you will pay and also the other terms of the loan.

do not apply for frivolous department store accounts just because of an advertised discount. These accounts often come with marginal credit limit’s and high interest rates. Having even a small balance on a low credit limit card can hurt your credit score. Any time a department store requests your social security number they are bonding themselves to you and will report to your credit bureaus for many years to come.

The five factors are used by fico to derive a credit score. The lenders use the credit score to help determine your interest rate and loan amount.