Can AN FHA Loan Hurt My Credit?
Facts about whether or not a FHA loan can hurt your credit.
An FHA loan is great for persons who qualify for a little assistance from the government. The loan helps a person get a mortgage with a lower initial down payment. An FHA loan should not hurt your credit at all. As long as you are able to repay according to the terms of the loan, you should be able to actually improve your credit score. There are many counselors and advocates available that are able to explain this process in detail. These types of loans are great for people have limited income and need to get a mortgage.
Benefits Of An FHA Loan
Many people wonder if an FHA loan can hurt their credit. The answer is no more so than any other type of mortgage they take out. You credit score will depend upon how you repay your debt. All consumers should make sure that they have an interest and term length they are comfortable with. By using the FHA loan it just makes the process easier for persons who do not have enough money for the original down payment. Again, it is up to the borrower to make sure that it has a positive effect and not hurt their credit score.
How To Make Sure An FHA Loan Improves Your Credit
Make sure that you make on time payments in the full amount due. Credit bureaus don’t care that you received financial assistance with your mortgage, they only want to see that you are fulfilling your financial obligations. By being a good borrower, your score will only improve. So can an FHA loan hurt your credit? Only if you ignore your responsibilities and do not pay on time. These types of loans have helped many people in the past get a house they otherwise couldn’t afford.
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