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Credit Repair Techniques

What can you do if you have less than perfect credit?

1. Lower Your Payments

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Combining all your bills into one payment is an excellent way to rid yourself of high interest credit card bills and late fees, and to lower your overall monthly payments. If you are a homeowner with a good amount of equity in your home you may still be able to lower your monthly mortgage by refinancing. Just expect to pay a slightly higher interest rate due to your credit problems. We can prepare your documents and then present them to many lenders to find the best rate possible.

2. Consolidate Your Debts

If you don't have a lot of equity in your home but you are looking to clean up late payments and pay off debts, you can still get the cash you need with a 125% LTV. This enables you to borrow up to 125% of your home's value. The down side is that the interest rate will be much higher than with other types of loans. This can be a way to manage your minimum monthly payments by spreading the payback period over a longer time frame.

3. New Home Loan

You may be surprised to find that you can qualify for a new home loan. Expect the lender to require a larger down payment to compensate for your credit problems - but it is possible. Taking advantage of a fresh start can give you the opportunity to repair the credit history. At HOMELOAN Source we can help you calculate the terms and conditions of a new home, and even put you in touch with a local real estate agent.

4. Improve Your Credit Standing

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There are lenders that can work with credit grades as low as D. We can review your situation and let you know if there are ways to make your "history" look better to a lender. For instance, you may have a late payment due to a disputed payment, or other circumstances caused an interruption in your payments. Even if they can't be explained satisfactorily, we can prepare your file and have it ready to resubmit as your history cleans itself over time.

Credit Grade Guide

Many lenders will evaluate your credit standing or "grade" based on something called a FICO score. FICO is a mathematical model created by the Experian credit bureau as a tool for lenders to use in evaluating the risk associated with lending you money. Your score is calculated on a series of questions about your credit history and income, among others. Below you will find a credit chart based on the FICO score model.

Quality Grade	Credit Score	Debt Ratio	Max LTV Ratio	Credit Type	Delinquencies:			Typical Additional Requirements
					# of Times	# of Days	Within Last
A+ to A	670+ 660	28/38	To 95%	Mortgage	0	-	24 mo	Good/excellent credit during last 2-5 years
				Installment Revolving	0-1 0-1	30 60	12 to 24 mo	No bankruptcy within the last 2-10 years.
B+ to B-	620	50	75-85	Mortgage	2-3	30	12 mo	No 60-day mortgage lates. 24-48 mos since bankruptcy discharge. Higher number of rolling lates may be allowed
				Installment Revolving	2-4 0-2	30 30	12 mo 12 mo
C+ to C-	580	55	75	Mortgage	3-4 0-2	30 60	12 mo 12 mo	12-24 months since bankruptcy discharge. High rolling lates allowable.
				Installment Revolving	4-6 2-4	30 60	12 mo 12 mo
D+ to D-	550	60	65-70	Mortgage	2-6 1-2	60 60	12 mo 12 mo	Bankruptcy discharge within last 12 months.
				Installment Revolving	Poor payment record with limited 90 day, isolated 120 day lates.
E	520-	65	50-65	Mortgage	Poor Payment record with a pattern of 30, 60 and 90+ lates			Possible current bankruptcy foreclosure. Stable current employment.
				Installment Revolving

Contact HOMELOAN Source to find out more about your current situation. There is no cost or obligation to have an interview. Using our wide range of experience and the fact that we know where to go in the mortgage business, we might be able to help you out. Even if you thought it was hopeless. Give us a chance, and we'll let you know if it is worth a try. Contact us here.