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Loan Q & A: My son just graduated from UGA and wants to buy his first house, but his credit is less than perfect.

Stephen,
My son just graduated from UGA and wants to buy his first house. The problem is that I just became aware he has credit cards in his name and, until recently, has not been paying his bills on time. Since I've heard on the news about all the high-risk mortgage lenders going out of business, can you make any suggestions about his options, given his now less-than-perfect credit?

Chuck, you are correct that in the last few months our industry has seen a bit of a credit crunch, resulting in credit restrictions becoming tighter. The best program for your son may be an FHA loan. If his credit has been fairly good for just one year, FHA forgives credit blemishes from the past. Also, if your son does not qualify on his own, you can co-sign the loan with him. FHA has no pre-payment penalties and the rates are terrific.

Posted by Stephen Katz on 06/25/2007 11:10 PM

Comments (2)

fha, mortgage, credit, loan

2 Comments on Loan Q & A: My son just graduated from UGA and wants to buy his first house, but his credit is less than perfect.

I agree, keep it simple and FHA does forgive those who have blemishes. Great advice Stephen.

06/25/2007 11:14 PM

by Open Home Mortgage - Georgia's FHA Loan Expert (Open Home Mortgage - Georgia FHA Loan # 1 Lender)

Hi Stephen, I see this is your first post on Active Rain. Congratulations!! I Just wanted to welcome you to our Real Estate Industry Network!

Welcome aboard, I hope you'll continue to blog, and invite others. Wishing you all the success our business and this network have to offer.

Enjoy!!

Below are some sites and groups you may want to visit right away:

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Lastly, you can join groups you have an interest in, or would like to learn more about. Maybe Target Marketing, Real Estate Technology, or you can search All Groups.

I hope you'll find this "welcome" comment, to be a useful tool in helping you get started here on Active Rain. Please contact me if you have any questions or need anything in the way of assistance. You will meet many wonderful people her. Good Luck to you and your business, and Happy Blogging!

06/26/2007 12:32 AM

by Brad Andersohn ~ Community Builder (ActiveRain)

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