The Gustan Cho Team Helps Borrowers With Bad Credit Repair Florida

Florida Home Buyers With Bad Credit Repair Florida

The Gustan Cho Team Helps Borrowers With Bad Credit Repair Florida

First time home buyers or seasoned home buyers in Florida who have bad credit and are not homeowners can see if they qualify for a home loan in Florida.

  • Florida renters who want to become homeowners and have documented income but for whatever reason have bad credit, prior bankruptcy, prior foreclosure, open collections, judgments, high debt to income ratios, or other credit issues, can contact The Gustan Cho Team at Nationwide Mortgage & Realty LLC at 262-878-1965 or text Gustan Cho on his cell at 262-716-8151.
  •  Borrowers can qualify for a 3.5% down payment FHA insured mortgage loan with a  580 FICO credit score as long as they had made timely payments for the past 12 months.
  • Medical collections are exempt and unpaid collections that are under $1,000 aggregate balances are exempt from debt to income ratio calculations and do not have to be paid to qualify for a FHA Loan.
  • If the total collection accounts is greater than $2,000 in aggregate, then 5% of the unpaid collection accounts is used to calculate debt to income ratio by the mortgage underwriter.
  • Unpaid collection and charge off accounts do not have to be paid off.
  • If the 5% calculation factor will surpass the maximum debt to income ratio cap, then a written payment agreement can be established and the mortgage underwriter will go off the monthly payment agreement agreed upon by the creditor and the borrower.
  • No payment seasoning is required. If the mortgage loan applicant has too many derogatory credit and recent late payments and credit scores of 500 FICO or lower, then they may have to hire a bad credit repair Florida company or consultant.

Reasons For Low Credit Scores

There are many reasons why mortgage loan applicants may have low credit scores.

To qualify for a FHA insured mortgage loan with a 3.5% down payment, you need a minimum credit score of 580 FICO.

  1. Borrowers with under 580 FICO credit scores need to have 10% down payment and compensating factors such as substantial reserves, verification of rent, other income that is not being used to qualify for home loan, and other strong factors to offset the lower credit scores.
  2. There are reasons why a borrower can have a low credit score but the good news is that there may be some quick fixes that can rapidly increase and improve a mortgage loan applicant’s credit score.

Quick Bad Credit Repair Florida Fixes For Bad Credit Borrowers

Here are some quick bad credit repair Florida fixes for mortgage loan applicants who have bad credit and low credit scores.

  • No credit: Borrowers who have no credit, this will really impact your credit scores.
  • Borrowers who have no credit will need to add positive credit by getting two to three secured credit cards.
  • Secured credit cards are real credit cards but the credit card company requires applicants to pay an upfront deposit and the credit limit will be for the amount of deposit.
  • Each secured credit will rapidly increase and boost credit scores.
  • Some folks who get three secured credit cards have seen their credit scores go up as much Maxed out credit balances:
  • Borrowers with high credit balances on your credit cards, this will temporarily plummet their credit scores.
  • However, the good news is that this is a temporary drop and once the credit card balance is paid down,  credit scores will shoot right back up.

     Recent late payments:

  • Borrowers who had long relationships with creditors such as credit card companies, auto finance company, department credit company, mortgage company, utility company, or other creditor, and they have overlooked making a payment one month and the creditor may have reported you late can try contacting them and see if they can reverse the late payment record on their credit report.
  • One recent 30 day payment may drop your credit scores by 60 FICO or more points.
  • Late payments can plummet credit scores initially but eventually will have less of an impact as time passes.
  • Late payments also will remain on credit reports for a period of 7 years.
  • Most creditors will work with consumers if they had a solid on time payment history.
  • Borrowers with multiple late payment history with the particular creditor, the chances are that they will not reverse the late payment or late payments.

The Gustan Cho Team at Nationwide Mortgage & Realty LLC Helps Chicago Area Borrowers -> Bad Credit Repair Chicago

Collection accounts:

  • Borrowers with many older collection accounts, may try to negotiate with the collection agency with a pay for delete.
  • Pay for delete is when consumers offer to pay the unpaid collection balance for pennies on the dollar but in turn the collection agency deletes collection accounts off consumer’s credit report.
  • Never pay a collection account if the collection agency is not willing to do a pay for delete because it will reactivate the date of last activity and drop a consumer’s credit scores.
  • By paying an older collection account, what it does is it reactivates the older collection account and makes it new so even though the collection account is from years ago, the credit bureaus recognizes it as a new collection account.

Related> Credit rescoring and credit repair

Related> Florida credit repair and debt relief agencies

Related> Fair Credit Reporting Act