The FHA Government Loan Program is ideal for borrowers with poor, impaired credit and borrowers who lack a sizable down payment. When qualifying for an FHA Loan, the borrower needs to prove their income is sufficient to make the monthly mortgage payments. The value of the house compared to the size of the loan is also very important.
The first step to improve your credit score is to get a copy of your credit report. This way, you can see where your score is today as well as any problem areas that need to be addressed in order for your credit score to rise. Correct any inaccuracies, pay off old collection accounts, and try to reduce the balances on active accounts to 20% or less than the maximum credit line. Multiple credit inquiries made within a short time will lower your score. It is a good idea to have a copy of your credit report in hand before speaking to lenders, so you can inform them of your score.
To make the right decision for your particular situation, be sure to shop around and find a loan that meets your needs!
