Credit Health Starts by 

knowing the Credit

grading scale:

The three main credit rating agencies, Standard

and Poor’s, Moody’s and Fitch, use a combination

of economic, social and political factors to

determine the capacity and current and future

debt obligation of countries. This study contributes

to literature in two ways.

 

Credit:

Can you make a goodwill or courtesy adjustment

and remove it from my credit report?

We understand that you may be concerned about

the impact of a late payment. Because the

information we report to the major credit bureaus

is required to be complete and accurate we are

unable to make goodwill or courtesy adjustments.

When is a payment reported as past due/delinquent

on my credit report?

A payment can be reported as 30 days past due if

it is not received within the calendar month in which

the payment is due. Although February only has

28 days, or 29 days in a leap year, if you do not

pay February within the month, you can still be

reported as 30 days past due.

Always be careful when making mortgage payments

as the end of the month nears, especially on

weekends. Be sure to allow time for your payment

to post.

​

Can I get a copy of my credit report?

To get your free credit report or for more information, go to annualcreditreport.com. You are entitled to a free credit report every 12 months from each of the three major credit reporting agencies (Equifax, Experian, and TransUnion)

How do I correct an error on my credit report?

You may dispute information that LoanGIANT furnished by submitting a dispute directly to LoanGIANT by one of the following:

• Call us: +1 404-407-5727

• Mail to: LoanGIANT, LLC
  6595 Roswell Road #2407, Atlanta, GA 30328

• Email us at: CustomerCare@LoanGIANT.cash

I’m refinancing my loan. If I don’t make the normal payment within the month before I close, will I be reported late?

A payment can be reported as past due if it’s received 30 or more days after your due date, even if you’re paying off your mortgage. It’s a good idea to make your payment as usual and we’ll send you a refund check if you overpay.

Your closing date may not be the day we receive your payoff. It may take additional time for your closing or title agent to send us your payoff funds.

The good through date on your payoff quote is the expiration date on the amount indicated to completely pay off your loan. It doesn't provide an extended grace period to make your normal payment.

Can I get a mortgage with bad credit?

When your credit score is low, the dream of home ownership can seem like an impossible one. You’re not alone. More than 30% of Americans have credit scores below 670, which is often the minimum score required to qualify. Loans with the most competitive rates require at least a 675.

However, there are things you can do to improve your chances of making your dream come true, even with less-than-perfect credit. If you follow the advice below, you’ll step into the mortgage lender’s office with more confidence and better odds of success.

Take actions to improve your chances of loan approval.

• Maintain steady employment

• Pay your bills on time

• Paying off existing debt

• Avoiding taking on new debt

• Save money and build a cushion for emergency situations

Do your homework. Knowledge is your friend.

Bad credit doesn’t exclude you from all mortgages, but some types of mortgage loans will be harder for you to qualify. On the other hand, two federally funded programs, FHA and USDA home loans, are friendlier to people with poor credit and have easier minimum requirements. But watch – often loans with lower qualifications come with stricter limits or other stipulations such as requiring mortgage insurance for the life of the loan.

FHA Loans and bad credit.

You may qualify for a 3.5% down payment with a credit score of 580.

VA Loans and bad credit.

VA loans have a minimum 580 credit score requirement. They offer several advantages for borrowers with bad credit:

Conventional Loans and bad credit.

What are called conventional loans are loans not insured by the federal government. They require a minimum credit score of 620. Conventional loans that also conform to the criteria set by Fannie Mae and Freddie Mac will have additional requirements. USDA loans also require a credit score of at least 620.

Know where to look for your loan.

Private lenders, credit unions, and community banks will have more flexibility in what they can offer to a borrower with poor credit. Regulated institutions, such as large banks, must follow a stricter guideline and so may not have as many loan options to offer you. Remember, though, that the leniency of a private lender usually comes with a cost, such as higher interest rates or a higher minimum down payment.

Save up for a larger down payment.

This may take longer than you’d like, but it’s the smart way to go. The worse your credit, the higher the payment you’ll have to make anyway. Plus, anything less than a 20% down payment will require the expense of private mortgage insurance. Having more cash in hand tells lenders that you’re serious and improves your chances of being offered a better rate.

Get good advice.

Reach out to a LoanGIANT Loan Consultant. At LoanGIANT, our passionate goal is to bring the dream of homeownership to as many people as possible. And that includes people with bad credit. Mortgages is all we do. Let Caliber put you on the path to home ownership, no matter what your credit score is.

Can a low-income person get a mortgage?

Your income is one of the primary factors mortgage companies to determine if you qualify for a loan. For every mortgage loan, there are minimum income requirements and maximum debt limits that must be met in order to qualify. No question about it, for people with low income, this presents a difficult barrier to homeownership.

But it can be done. In fact, there are some mortgages designed to work for you.

Low income qualification varies by location, so there is no hard and fast income amount that determines eligibility. Typically, the minimum requirement is based on your income in relation to your other financial obligations. Most lending companies require your housing costs take up less than 28% of your pretax income and your debt payments take up less than 36%. They have limits on how much of your monthly income goes toward debt (this is called your debt-to-income ratio, or, DTI). A DTI of 45% or less is a pretty standard threshold. Higher ratios may be allowed for people with higher credit scores and for loans carrying private mortgage insurance (PMI).

Low income status does not have to exclude you from owning your home, and it shouldn’t force you into a less than ideal mortgage.

Before you search for a home, do research on your loan.

• Get an idea of what money you’ll need. Make this your first step. Look online to find out what an average home in your area costs. Taking that as baseline, use the online mortgage calculator from LoanGIANT Home Loans to see what a mortgage might look like for you. Remember this is an estimate and mortgage rates can change at any time.

• Figure out where you stand. Gather all of your financial information, including your current pretax income, all of your current expenses, and everything you have in savings, investments, or other assets. While you’re at it, calculate your DTI by dividing the total of all debts your owe by your pretax income. Finally, get your credit report. Low income does not automatically mean a low credit score. Most mortgages require a credit score between 580 and 670. The higher the credit score, the better your interest rate will probably be.

• Find out if you qualify for assistance. There’s a chance you qualify for down payment assistance, home buying grants, or seller-paid closing costs.

• Find out what options are available. Not all mortgages have the same requirements. Non-conventional loans (those backed by the federal government) are designed to benefit low income borrowers and usually allow smaller down payments and higher DTIs. Most conventional loans (those not backed by the government) do not have income limits, and some have extra benefits such as no credit score requirement, alternative down payment sources, or greater flexibility in income qualification.

Common mortgage programs best suited low-income homebuyers.

• FHA loans. Government-backed loans that allow a 3.5% down payment, higher DTI ratio limits, and credit scores as low as 580.

• USDA loans. Federally-insured loans specifically for low-to-medium income borrowers. Income must be below a certain threshold (115% of the average area median income). The PMI fee is only 0.35%, and certain home repairs can be included in the loan amount.

• VA loans. For qualifying active, retired, or honorably discharged military personnel and their spouses. They do not require a minimum down payment.

• HomeReady Mortgage. A conventional mortgage from Fannie Mae, one of the largest investors in mortgages. The income of every person living in the house is included, increases your DTI, and requires as little as a 3% down payment.

Get good advice.

Make sure all your homework is on the right track. Reach out to a LoanGIANT Loan Consultant for a fuller picture of what the possibilities are for you. At LoanGIANT, we’re passionate about bringing homeownership to as many people as possible. We know low income borrowers face plenty of challenges, but we go above and beyond to help everyone realize their dream with a workable, financially responsible loan. We offer many mortgage loan options. We likely have one that’s right or you.

Can I get a mortgage after going through a foreclosure?

Going through a foreclosure is a brutal, depressing experience. It damages your credit and your confidence. With patience and effort, you can recover, overcome the past, and own a home again. It will take time. It will take work and discipline. If you take the right steps, you will demonstrate you are ready to take on a mortgage loan.

Steps toward owning a home again:

• Be patient. It will take time for your credit and your financial health to recover after a foreclosure. Expect it to take three to seven years for your credit to improve, barring any additional financial setbacks. Seven years is also the average waiting period required for borrowers to regain eligibility.

• Practice healthy financial habits. Everything you do to improve your credit and financial status will get you that much closer to borrowing eligibility again. Maintain steady employment and pay down as much debt as possible. Avoid taking on new debt and refrain from making large purchases. Keep up with your bills and pay them on time.

• Save your money. Use this time to build up your savings, both for emergency expenses and for your future home. Start with saving three to six months’ worth of living expenses to provide a cushion to avoid further debt. Then start saving for your future down payment. You’ll need at least a 10% down payment.

• Monitor your credit. Request credit reports from several reporting bureaus. Make sure all of the information is correct. Look for errors that can hurt your rating, such as payments applied to the wrong account, duplicate account information, or a former spouse’s debt showing up on your report.

When you’re ready to purchase a home again, look at all the options.

Different types of mortgage loans have different requirements for people who went through a foreclosure. They also have different waiting periods from the time of the foreclosure. Here are the main types of loans and their waiting periods.

FHA Loans.

These loans require a three-year waiting period that begins when the foreclosure case has ended. Typically, that would be from the date your home was sold. If your foreclosed loan was through the FHA or the VA, you will be ineligible for another federally insured loan until you have repaid the government.

Conventional Loans from Fannie Mae or Freddie Mac.

These loans require a seven-year waiting period. The longer wait is because they are not backed by the federal government. However, the wait period can be shortened to just three years if you meet the following requirements:

• Prove in writing that the foreclosure was caused by extenuating circumstances

• Use the new mortgage for either a limited cash-out refinance or for the purchase of a primary residence (not for a second home or investment property)

• Demonstrate that the loan-to-value (LTV) ratio of the new loan is 90%

Conventional Loan from Private Lenders.

Because private lenders set their own terms, there is no set waiting period. They vary. But usually shorter waits require a larger down payment and higher interest rate.

Be Pre-Approved Before You House Hunt.

We recommend you secure pre-approval for a loan before you begin your search for your new home. The pre-approval process will demonstrate that you have come through the foreclosure setback and are now ready to be a homeowner again.