Bad credit Florida home loans do not have to equal high interest rates or high payments on Florida home loans. At Florida-Mortgage-Lenders.com your Florida bad credit home loan depends on much more than your credit score or your past payment history. Our custom Florida home loan services provide the most alternatives available for Florida home loan applicants with low credit scores. FHA home loans have many advantages for Florida home loan applicants with low credit scores including:
There are five factors that comprise the credit score. These factors in the hierarchy of importance are listed, just as a Florida mortgage lender will look at the score:
35% = Payment History: Paying debt on time and in full has a positive impact. Late payments, judgments and charge-offs have a negative impact. Missing a high payment has a more severe impact than missing a low payment. Delinquencies that have occurred within the last two years carry more weight than older items.
30% = Outstanding Credit Balances: The ratio marking the difference between the outstanding balance and the available credit is important here. Ideally, the client should keep their balances below 25% of available credit limits.
15% Credit History: A borrower’s credit history marks the length of time since a particular credit line was established. A seasoned Florida home loan applicant is stronger in this area.
10%= Type of Credit: A mix of auto loans, credit cards, and home loans has a more positive impact on a credit score than a concentration of debt from credit cards only.
10%= Inquiries: This quantifies the number of inquiries that have been made on a consumer's credit history within a six-month period. Each hard inquiry can cost from 2 to 50 points on a credit score, but the maximum number of inquiries that will reduce the score is 10. In other words, 11 or more inquiries in a six-month period will have no further impact on the borrower's credit score.