What type of Credit Report do I need to get a Mortgage?

What type of Credit Report do I need to get a Mortgage?
We all know your credit report is very important in the
decision making process for loans. With the current
tightening up in the lending arena, one might ask yourself
what is required to buy a house in today's market? During
the last 7 years buying a house was fairly easy for just
about everyone. The rates were incredibly low and they
currently still are. Here is what banks are currently
looking for to get you in a house. I will talk about two of
the most popular loans, FHA and Conventional. Most of the
creative financing that has existed over the years is gone;
we are going back to the plain old vanilla loans.

Conventional Loans

Conventional loans are loans that are secured by government
sponsored entities such as Fannie Mae and Freddie Mac. This
type of loan is usually used for the following type of
loans:
a. Purchase
b. Refinance

The current loan limits for conventional loans are
$417,000. This particular loan is riskier for banks and
requires good credit. This type of loan is run through
either Freddie Mac or Fannie Maes automated underwritten
engines. All banks use this software to determine whether
you are approved or not. This loan typically requires a
little money to get into a home, and is for good credit
borrowers. Here are the determining factors from your
credit report that these engines take into account.
1. Your Credit Score
2. Employment history
3. Time on Job
4. Payment history
5. Debt to Income ratio
6. How much savings do you have
7. How much revolving credit do you have and for how long.

FHA

FHA loans are loans that are insured by the Federal Housing
Authority, which is an entity of HUD (Housing Urban and
Development). This loan is less risk to the banks, and has
a lot of benefits when coming to your credit report
history. Here are the benefits.
1. No credit score requirement
2. Low down payment (3%)
3. Easy credit qualifying

Here is what FHA typically looks for to get you into a
house.
1. Clean 12 to 24 month history
2. If you have no credit, FHA will allow alternate lines of
credit, such as:
a. Letters of payment history for the last 12 months in
good standing from the following:
1. Electric Company
2. Water Company
3. Cable Company
4. Day Care
5. Child support history
6. Cell Phone Company

This loan also requires good rental history, you don't have
to have it, but if you have credit issues it's typically
required. When applying for a FHA loan, you probably should
get a current copy of your free credit report and do some
research. FHA is a loan that is less harsh on your credit,
but you need to show at least 3 source of credit reporting
in good standing. Having late payments on your credit
report during the last 12 to 24 months is sure way to get
denied. Get a copy of your free credit report today.

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At http://www.my720fico.com you can get a Free copy of your
credit report with scores. We also provide lots of articles
to help with educating you in regards to your personal
credit.