What is a “good” credit score?
A good credit score is 720 or higher. However, that doesn’t mean if your score is lower than a 720 we can’t help you get a loan. Mid America Mortgage, Inc, NMLS #1142067 has loan products that will accept lower scores.
- USDA loans are for borrowers with no down payment, possibly a lower credit score and lower income. Borrowers must meet property and income eligibility.
- VA loans are for veterans, spouses or eligible dependents.
How do I establish a credit history?
To have a reportable credit history you need to have some type of revolving or installment debt. You must make all of your payments on time. If possible obtain a credit card charging a small annual fee and pay it in full each month.
Should I buy a home or continue renting?
Look at your financial situation. Are you prepared for the maintenance cost of homeownership? Owning a home is a big responsibility — you must make sure that you make your monthly mortgage payments on time. And if the property needs maintenance, it is now your responsibility, not the landlord’s.
Do I need reserves?
Most loans will require that you have 3 months of mortgage payments saved as reserves.
How do my student loans affect my ability to get a home loan?
Some loans require that one percent of the loan balance be used as a payment if the loan is currently in deferment. If there is a payment listed and you have a payment history, we may be able to count only that payment. A payment must be calculated even if the loan is in deferment.