Archive for February, 2011
Many of the ways that we used in the past to increase FICO scores cause more harm than good with the current rules for lending but we do still have a few powerful tools that can increase scores quickly to help you buy your San Diego dream home. One of these techniques is requesting a validation of debt. To be clear I am not saying to dispute items on your credit report at the bureau level because with the new rules a mortgage can NOT be funded with any active disputes showing on your credit report.
As stated in The Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) anyone can require a creditor to validate a debt that they claim you owe. In this section of the Fair Debt Collection Practices Act it states that a creditor has 30 days to validate the debt that they claim you have or it MUST be removed from your credit report which will in turn raise your credit score. Unless you are completely sure that a bad debt is being reported accurately this technique should be used before paying or negotiation to pay a collection or charge-off account.
Many of the credit reports that I see on a daily basis have incorrect balances for collections, phantom debts and incorrect debt obligations listed on them and by using this technique many of them can be cleared up. With the score increase that this one technique can bring many perspective home buyers may get the FICO score needed to qualify for a mortgage loan and buy a home in San Diego.
For a complimentary credit evaluation or to get a copy of our form letter to send to falsely reporting creditors please call me at 619 285.2921 so that we can help you achieve your goal of owning a home.
Feb 9th 2011
Great news for San Diego home buyers!
H.U.D. has anounced that the loan limits for FHA mortgages in San Diego will stay at last years levels. All home loans under $417,000 or under are considered “conforming” and have the best pricing but for a single family home in San Diego County the maximum loan amount is still $697,500 with up to 96.5% loan to value!
In most cases FHA financing can only be used for owner occupied homes but H.U.D. does allow purchase of up to a 4 unit property with the program as long as the buyer is going to live in one of the units. The San Diego FHA loan limit for a duplex is $892,950, for a tri-plex is $1,079,350 and for a 4 unit building is still at a whopping $1,341,350 all at the same 96.5%.
If you have any questions about using FHA financing for your San Diego home purchase call me at 619-285-2921