Do you have Collections right before qualifying for a Minnesota home loan to buy?

I see soon to be Minnesota home buyers looking forward to getting a home loan, but their collections get in the way, especially with USDA loans. I will tell you right now pre-collections of 60 day late payments makes it tough to get a VA loan.

buying a MInnesota home with USDA loan

USDA although limiting In the area to live, is great with a 100% program and staring at a 580+ credit score. After I hear of someone wanting to get a USDA loan they may find out that their past collections stop them for now on getting a USDA loan.

It’s at this point the potential buyer weighs their options to come up with $10,000 to $15,000 for an FHA loan or $30,000+ for a contract for deed with no banks.

When looking at these options paying off collections starts to look more affordable. Now before you go paying off collections you should take to a mortgage professional or credit expert because paying off old collections are known not to help your credit score a lot and some lending programs may allow past collections.

This is why you should talk on messenger live to talk to a mortgage expert so that you don’t make any expensive mistakes. There is a lot of data needed to understand the full picture of your situation and how much you can be approved for.

Avoid being late on payments it really hurts your credit score and is very difficult to get a loan. Late payment is when you are 30 days or later.

Sometimes paying off a few small old payments can be enough to boost your credit score to get qualified for one of the popular loan programs.

Managing your on-time payments is one of the most important things that you can do before applying for a mortgage. Foreclosures and bankruptcies can delay you by a few years on buying a home.

I look forward to your questions on live messenger chat.

If you want a no bank Minnesota contract for deed seller financing program click here

Thanks,

Ron

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