The minimum credit score needed for a Government Backed mortgage loan in North Carolina got higher at the beginning of May. The Program offered by NCHFA that allowed us to do mortgage loans for First Time Home Buyers with a minimum credit score of 600 changed.
The new Minimum Credit Score requirements for a USDA, FHA or VA Loan in North Carolina is now 640.
If you have a score of 600, or higher here are the steps we suggest you take NOW:
- Look at your credit report, if you don’t have on you can get it through Credit Karma
- If you have deferred Student Loans, see what kind of arrangements you can make to actually get a set payment amount.
- If you have revolving credit, start paying the balance on those credit cards down to $10. Yes, I mean $10. Not OFF – just down to $10.
- Charge something, a tank of Gas, lunch, whatever, charge something on the credit card each month - then pay it down to $10. YES that means you will have some interest that you are paying on a monthly basis, but that interest (small amount) will help you get a higher score.
- If you don’t have a credit card – get 2 or 3 secured credit cards TODAY. Go to the Bank at Walmart, look on Credit Karma – you need 2 or 3 revolving accounts.
- If you have a family member with GOOD credit, and they will add you to a credit card that was opened AFTER you turned 18, ask them to add you as an authorized user. That GOOD credit History will help raise your score. Make sure that the balance on the credit card they add you to is no more than 30% of the credit line. If they add you to a card that is maxed out – you will see ZERO benefit.
Here's more information - especially if you have issues with Collection or Charge Off . Accounts.
Remember that your Credit Score is simply a reflection of what you’ve RECENTLY done with your credit… so the OLD STUFF is not what is likely to be pulling your score down as much as the fact that you don’t have MUCH being reported that is CURRENTLY good.
If you have questions about pre-qualifying for a mortgage loan in North Carolina- please call us! Steve and Eleanor Thorne 919 649 5058. We know how to get borrowers in NC approved, we know what credit scores and reports the Underwriters will take. We’ll call you back, and if you need to add another credit card, or pay something off – we’ll work with you. Here’s some GOOD CREDIT Advice (and it’s FREE!)!
Originally posted at NCFHAExpert.com
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