To answer this question you must put your question into proper perspective. Are you trying to buy a home using a VA loan, FHA loan or some other loan program, or are you just wondering about making your rent payment for some other reason?

As a person looking to qualify for a mortgage, you will definitely need to keep paying the rent. Often as part of qualifying for a mortgage you may be asked to provide cancelled checks of your rent payments. Typically, if you need to provide cancelled rent checks you will need to show at least 12 months. For mortgage qualifications, housing payments (either as a mortgage payment or as a rent payment) are one of the most important credit requirements. If you make your rent payment or mortgage payment on time qualifying for a mortgage will be a lot easier.

In reference to making your rent payment – if at all possible you want to make sure you make your payment with a check. This is the strongest proof you have of making your payments. Cash receipts and landlord letters are not always accepted.

If you are not trying to qualify for a mortgage you should consider the idea that you have a legal requirement to the landlord to continue making payments. In general, your lease agreement legally obligates you to make your rent payment. If you stop making your payments, you could possibly be evicted. If you have a question about the legalities of your state and your situation then you should contact a real estate attorney licensed in your state to determine your exact legal standing.

I’m not sure why, but the Roth IRA rules for tapping into your Roth IRA without penalty or taxation, that I know of, stipulate that you qualify as a first time buyer if you haven’t owned a home in the past two years. This is contrary to most first time home buyer mortgage programs which have a three year requirement where can’t have owned a home. None the less it is good news if you are buying a home as a first time home buyer and want to tap into your Roth IRA.

A Few Rules To Play By

• There Is A Limit: In general the rules allow for an eligible first time home buyer who has a Roth IRA to pull up to $10,000 out of their Roth IRA to purchase a home. This limit is a lifetime limit.

• Get Qualified First: One thing you do not want to do is pull your money out too soon. If you plan to use your Roth IRA money to buy a home, make sure that you get yourself qualified for your mortgage first. The limit for accessing your Roth IRA for buying a home is 120 days. If you pull your money out too early you could be subject to having to pay penalties and fees for early withdrawal, so be careful.

The process of getting qualified for a home should even include finding the home. In today’s home buying market – 2010 – it is taking a fair amount of time to not only get through the bank qualifications but extra delays can be expected if you are trying to buy a home that is a short sale home.

This just about covers some of the very basics about using your Roth IRA to buy a home. Of course, to determine your exact qualifications you should consult with tax preparer or financial advisor.

Single First Time Home Buyer Applying For PHFA Tax Credit Advance

First Time Home buyers in Pennsylvania who plan to use the Keystone Home Loan and the Keystone Home Loan Plus Programs for a home purchase may now qualify for the PHFA Tax Credit Advance Loan Program. The PA Tax Credit Loan Program is designed to let PA First Time Buyers to take advantage of the Federal First-Time Homebuyer Tax Credit in a way that let’s them borrow money against the $8000 Tax Credit they are due. The PHFA Tax Credit Advance Loan Program is offered by the Pennsylvania Housing Finance Agency.

Why PHFA Authorized The Tax Credit Advance Loan Program?

Only first-time home buyers can qualify for this federal tax credit. These first-time buyers are eligible for an $8000 tax credit. This tax credit is paid through the 2010 tax return if the house was purchased in 2009. This Advanced Loan Program enables buyers earlier accessibility to their tax credit, due to the actions of the PHFA, intending to better serve Pennsylvania home buyers.

This PHFA tax credit advance loan program is not guaranteeing anything, but is intended not to require any loan payments or interest charges until June 2010. This should allow enough time for the home buyer to receive his 2010 tax credit refund and then use the funds to repay this PHFA advance loan before any payments or interest is due

PHFA Tax Credit Advance TCA Loan Program Guidelines

1. The TCA Program only applies to first-time buyers getting a PHFA first mortgage through the Keystone Home Loan and the Keystone Home Loan Plus assistance programs.

2. It can be used through PHFA Access Modification Program and the Purchase Improvement Program, which are special mortgage plans.

3. In actuality, the TCA is a lien against the house which must be paid off when the homeowner sells or refinances.

4. The minimum loan amount is $500, but the TCA can be either 10% of the home’s sales price up to $6000 for a newly built house and a resale house up to an amount of $5000.

5. Those PA homebuyers wanting to take advantage of a TCA loan must be occupants in the acquired home.

6. There’s no interest fee or loan payment due until June 2010. If the TCA is not repaid by that date, then the TCA converts to a 10 year loan and the interest percentage the same as that of the first mortgage.

7. This TCA cannot be used with any of the other programs which offer closing costs and down payment assistance.  These include Keystone Assistance Loan, HOMEstead, or the Access Downpayment and Closing Cost Assistance Programs.

8. Time extensions for paying back the TCA by June 2010 are not granted. The interest free and no payment due conditions end at that specified date.

9. The TCA is not allowed in any arrangement when buying a home from a parent or other family member.

There are requirements for income and house sales price which are dependent on the federal tax credit income guidelines or where the PHFA income and purchase price guidelines apply. This choice depends on whichever is more limited or restricted.

New Home Owner

In the State of Virginia those first time home buyers looking to buy a home for the first time and are short on cash for a down payment or closing costs can use a new mortgage loan program through the Virginia Housing Development Authority (VHDA).  This loan program is referred to as a Home Buyer Tax Credit Plus Program.

This program helps qualifying first time buyers who may have less money available for down payment and closing costs.  The Virginia Home Buyer Tax Credit Plus Program is especially helpful in getting a state mortgage loan in advance of receiving the $8000 home buyer tax credit. The $8000 first time home buyer tax credit was first authorized by the Obama Administration in early 2009 which replace the $7500 home buyer tax credit authorized by the Bush administration in 2008. More information on the $8000 tax credit.

There are certain details and specifications included in this Virginia Home Buyer Tax Credit Plus Loan Program.  They are as listed below:

1. This program, which is associated with the IRS $8000 tax credit, will end December 1, 2009.

2.  If there is a second mortgage, the first year’s interest rate is 0% and no payments are due on this second mortgage the first year of the loan.

3.  There is a limit up to 5% of home’s purchase amount on the second mortgage and the first and second mortgage loans must be combined when using a first mortgage program from the VHDA.

4.  Specific income and house cost limits are dependent on property location.

5.  The ones applying to borrow must be a first time home buyer.

6.  Another consideration is a personal credit score at least as high as 620 for the home buyer.

7.  It is necessary to have 1% of the sales price, in personal funds, in order for qualification for buying a house.

When needing further information on Virginia Housing for the first time home buyer and assistance with down payments program, contact: Down Payment Assistance and First Time Home Buyer Programs in Virginia.

Family Who Used an FHA Mortgage To Buy A House

Since the late 1990′s to prior to the current credit crisis, the demand for FHA home mortgage loans was limited to first time home buyers and those home buyers who less than perfect credit. Since the mortgage and real estate crash of 2007-2008, many lenders have gotten rid of other loan programs. As a result, FHA mortgage loans have become the loan of choice for many people.

Many people living in states like Arizona, Pennsylvania, Tennessee, Georgia and numerous others, are choosing FHA mortgage loans as the way to finance their first home or their next move up home.

You may not be aware of this, but FHA, which stands for Federal Housing Administration, is not actually a lender who lends you money. Rather, FHA only acts as an insurance company to insure your home loan, that you do get from a mortgage lender, in the event of default. This means that when you take out your FHA loan, you will be required to pay (up front) something called UFMIP — short for Up Front Mortgage Insurance Premium. This amount of money varies from 1.5% of your loan amount to 3% of your loan amount depending on loan program.

General FHA Mortgage Loan Highlights – Features – Benefits

• Down payment is 3.5%, but it can be a gift from a relative
• FHA home loans do not allow pre-payment penalties
• Monthly mortgage insurance is required on all FHA loans
• FHA loans allow the seller to pay closing costs
• Technically there is no minimum FICO credit score requirements, but 620 is an unwritten guideline for getting a mortgage approval.

FHA Streamline Refinance

For anyone who has an FHA loan currently, when rates drop the best refinance program for FHA loans is the FHA streamline refinance. The FHA streamline refinance is the easiest way to get a lower rate. The primary criteria to be eligible for the FHA streamline is that you have made your mortgage payments on time for the last 12 months.

FHA 203k Streamline Program

Because of the number of foreclosures in Arizona, Nevada, California, Texas, and Florida the FHA 203k streamline rehabilitation loan is great for buying bank-owned properties. The reason for this is because the FHA 203k rehab loan allows you to finance repairs right into the loan and foreclosure properties tend to need repairs.

When you finance a home with the FHA 203k loan, the money set aside for repairs can be paid directly to the contractors and up to 35,000 can be set aside. If you think the FHA 203k streamline might be an option for a home you are considering, be sure to speak with a loan officer who has experience with FHA 203k streamline loans.

FHA 85% Cash Out Program

For different reasons, many times people will want to access a portion of the equity in their home. The FHA 85% cash out program makes that possible if you have enough equity in your home. Many people find that by paying off high interest debts, they are able to get in a better overall financial position.

Summary

If you want to buy a home, buy a foreclosed home, purchase a fixer upper house, need to refinance you may want to consider an FHA home loan.

Credit Score Scale

Credit scores range anywhere from approximately 850 to 350. The highest I have personally seen was 849 and the lowest was 375 and I have looked at 1000′s of credit reports over the years.

Any credit score over 700 you could consider excellent. 680 is not bad either, it is good, just not excellent. Who says what is excellent? One guide you could go by is a mortgage requirement of 740. To get the absolute best mortgage rates you need to have credit scores more than 740. That is to say you need to have a middle score greater than 740.

Yes, there are three credit scores, one from each of the credit bureaus: TransUnion, Equifax, and Experian. Chances are, you will not get the same credit scores from each of the three bureaus as they each tweak their credit scoring process just a little different from each other.

For information on how to fix your credit visit: Fix My Credit With Credit Repair

Key Components of the $15,000 Home Buyer Tax Credit Act of 2009

• Eliminate the income caps of $75000 and $150,000 that the current American Recovery and Reinvestment Act of 2009.
• Expand the home buyer tax credit from $8,000 to $15,000.
• Open the home buyer tax credit to any home buyer, not just first time home buyers as the current home purchase tax credit stipulates.
• Extend the time frame that the tax credit is in effect to somewhere near the end of 2010 depending on when the bill is passed (if it gets passed). The bill suggests that it be in effect for 1 year from its approval into law. The current first time home buyer tax credit runs out on November 30, 2009.

Still to be determined is whether the tax credit will be allowed to be given to the home buyer at the time when they buy their home. Many of the bills supporters suggest that home buyers need to get their hands on their tax credit at the time of their mortgage closing to ensure that the tax credit will have the maximum impact on the housing and economic recovery.

As it stands now, the home buyers tax credit is not collectable until tax time in 2010, long after the time has ended when home buyers can qualify to receive their tax credit by purchasing a house.

Here’s What So About The Real Estate Market That Makes It A Good Time To Buy:

• $8000 First Time Home Buyer Tax Credit – The $8000 first time home buyer tax credit is good for first time home buyers who buy a home in 2009 before 12/1/2009. This tax credit puts money directly into the first time buyers pocket, but only at tax time next year. More information on First Time Buyer Tax Credit. See below for explanation about tax credit bridge loan offered by State Housing Authorities, FHA lenders and HUD approved non profit housing agencies.
• Falling Home Prices – Just about everywhere you go in the US real estate values have been on the decline for nearly 2 years now. Who knows if home prices will continue to fall. They are back to levels lower than they were in 2003.
• Mortgage Interest Rates – Mortgage rates have been near record lows for most of 2009, and even with the slight increase in rates as of the beginning of June 2009, rates are still very attractive and low to make lower priced homes even more affordable.
• Abundant Inventory – With the huge housing market slowdown and decline in property values, there is a lot of inventory for a home buyer to choose from. In some cases there are great move in deals, and there are plenty of deals that require some home improvement work as they are a result of being vacant and on the market for some time. Home buyers can pick and choose to find just the right house for their needs and likes.
• Short Term Tax Credit Bridge Loan – This program is new as it has just recently been launched by HUD and FHA to provide a way for first time home buyers to use the $8000 home purchase tax credit when they buy their house instead of having to wait until tax time.

What you just read were some of the good reasons to buy a home in the current buyer’s market. Now we’re going to cover some of the reasons to consider not buying a home in the current state of affairs with the US economy and housing market.

• Job Certainty – many prospective home buyers are nervous about the job market and layoffs. No job is guaranteed right now and if you do loose your job, it is a tough getting a new job. So, many people do not want to take a chance with their finances until the job market brightens up.
• Housing Prices – some folks are still waiting to see what home prices are going to do. Many feel that home prices are going to continue to go down meaning that there are even greater deals to be gotten.
• Interest Rates – Similar to housing prices, are rates going to continue low or go even further?
• Less than perfect credit – gone are the days of buying a home if you have credit scores less than 620. While FHA and VA underwriting guidelines still allow for lower FICO scores, mortgage investors are not buying mortgages where scores are less than 620.
• Little to No Cash Reserve – with the slow down in the economy, many people just do not have money for the down payment and trying to save for a down payment is difficult.

With these reasons, buying a home might just be a fantasy and waiting it out a reality. If your credit scores are low – do some credit repair to improve your scores. If you do not have enough money for a down payment arrange for a gift from a relative, or see what your employer has to offer. Some employers have programs to help their employees buy homes – your may be one of them.

No matter what situation you are in buying a home in today’s economic environment does take some careful consideration and planning. You may consider a home buyer education course. If you are a first time home buyer, you may be required to take a course if you seek to use a first time buyer program or a down payment assistance program to buy your home. Be proactive and take a class ahead of time to prepare you in advance for the journey that lies ahead in buying a home.  Good luck and happy house hunting.

How To Dispute Credit Report Errors

If you have recently applied for a mortgage and gotten some bad news about your credit report that you think you should dispute then this post is for you. Disputing errors on a credit report is a major part of the credit repair process. More information on What Is Credit Repair – The Basic Steps of Credit Repair.

• Step 1 Review Your Credit Report – The first place to start is with your credit report. If you have not gotten a copy of your report then you need to get a copy so you can review it. If you have gotten a copy of it, review your report and make detailed notes regarding any errors you see.

• Step 2 Make Sure You have Proof of the Error – Technically, US Credit Laws require credit bureaus to report accurate information on your credit report. Your creditors report information to the credit bureaus and without opposing information credit bureaus basically assume that information is accurate. As this is the case, if it is wrong it will stay there until it is corrected either by you or the creditor. If you have proof of the errors you need to supply it with your dispute. Make sure you only give the credit bureau copies of any paperwork you send them – keep your originals.

• Step 3 Must Dispute Each Mistake On Each Bureau – If you find the same mistake on several bureaus, you must write your dispute letter to each bureau and supply them with the proof you are using to dispute the errors.

• Step 4 Additional Information To Send With Your Dispute – there is a minimum amount of information that you will need to supply with your credit report dispute letter.

1. Copy of your driver’s license or state ID card – helps to prove your identity and provides correct home address
2. Copy of Social Security Card – help prove your identity and ties you to your credit account
3. The full name of the creditor or collection agency
4. The account number and name for the account you are disputing
5. Short, to the point, concise reason for dispute (each dispute must have this explanation)
6. Fully copy of your credit report

• Step 5 Pick how you want to dispute your credit report – you can do it online, or by mail. You may want to do it both ways to ensure the credit bureaus get your information. Below are the phone numbers, links to each credit bureaus dispute resolution department, and the mailing address for submitting your credit report disputes by mail. If you have questions about whether your dispute would be better filed through the mail or online – pick up the phone and call the bureaus and ask them. If you want help on what to include in your dispute, you can also call the specific credit bureau to find out what you need to send.

Contact numbers and online dispute sites:

• Equifax: (800) 685-1111 (Equifax.com Disputes)
• Experian: (888) 397-3742 (Experian.com Disputes)
• TransUnion: (800) 888-4213 (Trans Union Disputes)

Fixing errors on your credit report by mail:

What follows is a list of addresses for the major credit reporting agencies.

Equifax Information Services, LLC
P.O. Box 740256
Atlanta,GA 30374

Experian
P.O. Box 2104
Allen, TX 75013-0949

TransUnion Corp.
P.O. Box 2000
Springfield, PA 19022-2000

You should receive a letter in approximately 4-6 weeks regarding the status of the dispute. Mark the date you sent your dispute on your calendar, and keep detailed records in case there are any further problems. See Sample Credit Dispute Letter

Finding Errors On Credit Report

Filing a credit report dispute letter is an important part of the process to improve your credit scores and credit report. You will want to ensure that you include the following items as a minimum in your dispute letter for every credit account you dispute:

What To Include In Credit Report Dispute Letter

• Full name, SSN, Home address
• Credit Account Name
• Credit Account account number
• Indicate what you are disputing – what is actually written on your credit report
• Indicate what you say it should be
• Reference written proof that you enclosed to counter what is on your report from the creditor
• Indicate how you would like the report to read – they may not change it to that, but it is worth a try
• Reference that you have included a copy of your credit report

Sample of Dispute Letter to send to Credit Bureau to Dispute Errors on your Credit Report (FTC sample)

Date
Your Name
Your Address
Your City, State, Zip Code

Complaint Department
Name of Company
Address
City, State, Zip Code

Dear Sir or Madam:

I am writing to dispute the following information in my file. The items I dispute also are circled on the attached copy of the report I received.

This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.

Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records and court documents) supporting my position. Please investigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely,
Your name

Enclosures: (List what you are enclosing)

Note: Only send copies of your original documents – somehow things seem to get lost, and you will never get back what you sent.

Get more information on what to include in your credit dispute letter from the FTC.gov.