FHA Back to Work Program

Were you ever affected by an unforeseen economic event that prevented you from making your mortgage payment on time? Was your credit score once in the “good” to “excellent” range but now you’re trying your best to get out of the “poor” to “fair” range because of a recession or market crash? Trying to improve your credit can be difficult, take a lot of time, and put a hold on many things you’d like to do such as refinance your home loan.

If any of thglobal-equity-finance-fha-back-to-work-program-mortgage-loansese scenarios sound familiar to you, you’re in luck because there is finally an answer. The FHA now offers a Back to Work program that offers much more lenient guidelines for getting approved for a mortgage loan.

Most mortgage lending companies will only work with a borrower whose credit score is above 580, who can put down at least a 3.5% down payment, and be able to verify their income. However, if you’ve experienced any financial troubles such as a job loss, foreclosure, bankruptcy, deed-in-lieu, short sale or loan modification then you may qualify.

If your credit score has suffered because of any of the above and you can document that there was a significant loss in income (at least 20% of your household income) then this may be the answer you’ve been looking for. However, you must also be able to document that you have fully recovered from the event and also complete household counseling where you can better understand loan programs, learn how to create a budget, avoid scams, and prepare for the future.

Note that this is for case numbers effective on or after August 15, 2013 through September 30, 2016.

If this sounds like a solution to your circumstances, please contact us today and we can help you get started: 800-245-3279 or info@geqfinance.com

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How to Improve Your Credit Score

how-to-improve-credit-scoreIt can only take a few missed payments, and the next thing you know your credit score plummets. Now not only do you have a low credit score, but it can take a year or more to rebuild it. For those interested in taking out loans for a new home or car, or looking to refinance an existing loan, having a low credit score can really limit opportunities.

Now the golden question becomes ‘what can I do to improve or repair my credit score?” And, ‘how can I expedite the process of rebuilding my credit?’ Below is a checklist of easy steps you can take to rebuild that score from red to green.

  1. Take a look at your credit card balance(s). This seems obvious, right? However, it’s crucial to improving your credit. In order to improve your credit score you need to have a low debt to credit ratio. Try and keep your balance(s) as low as possible (below 30% credit line usage is recommended). If you’re having trouble paying your bills, even the minimum payment, contact your bank. They’d rather hear from you that you’re making an effort to pay but having trouble. Because you’re taking a proactive approach, they’ll often work with you to lower your monthly payment and interest rate under certain circumstances.
  2. Set reminders. Better yet, set up auto-pay. As you get older, the bills continue to pile on. It can be hard to remember each and every due date and amount. Set reminders on your computer or phone or set up an auto-pay so that at least the minimum payment is paid each month on time.
  3. Eliminate unnecessary credit cards and their balances. Got a card to your favorite retail store with a balance of $100? Maybe you have a few of these. One thing that affects your score is how many cards you have open. By eliminating a few of these and paying those balances off will help your score.
  4. Check your credit report. You’re able to check your credit score for free at each of the three credit bureaus. Use that to your advantage and check it every few months to see where you stand.
  5. Don’t transfer your debts from one card to another. Pay off what you can, when you can on both cards. Also, if you have an unused card, don’t just close out the account for a quick fix. Part of your score is determined by how much line of credit you have available. At the same time, don’t just open a new card to have more credit available. Too many cards can hurt your score (See #3)
  6. Avoid maxing out your card(s) at all costs.

Making payments on time month after month is essential to rebuilding your credit. Consistency is key. Again, if you’re having trouble making even the minimum payments, pick up the phone and talk to someone. After all, we’re all human which means we’re not perfect. However, if you make an effort, people will work with you. Follow these steps, including monitoring your score and you should start to see it rise over time. Good luck!

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