Written by Paul Kim; edited by Jasmin Baron  May 15, 2023, 4:32 PM CST FreeKick is a credit-builder product that can help parents build credit for their children ages 14-25. Users make a $1,000-$2,500 deposit into a savings account, used to pay off a $600 credit-builder loan over a year. Depending on the size of the deposit, a FreeKick account will cost $0 – $99 annually. Traditionally, the easiest way for parents to help their children build credit is by adding them as an authorized user on a credit card. However, this opens up both parents and children t ..read more

If you put down less than 20% on a conventional home loan, your lender will charge you private mortgage insurance (PMI) in addition to the principal and interest portions of your mortgage payment. It protects them if you ever default. If you take out an FHA loan, you have to pay a mortgage insurance premium (MIP) regardless of your down payment size. It serves the same purpose as paying PMI, but there are some significant differences. One of the most notable is that you can request to cancel PMI on a conventional loan once you reach 20% home equity, but getting rid of MIP on an FHA loan is mor ..read more

The Department of Veterans Affairs (VA) offers many benefits to military service members. Prominent among them is the VA home loan, which is one of the ways the department promotes homeownership among veterans and their families. VA loans have advantages over other mortgage types, including a 0% down payment loan option with no mortgage insurance premium. However, qualifying members still need to meet specific credit requirements to get approval from a VA loan officer. Here’s what you should know about the minimum credit score for a VA loan. What is the Minimum Credit Score Requirement for a V ..read more

FHA and conventional loans are two of the most popular financing options for would-be homebuyers. However, there are significant enough differences between the two that one is often a noticeably superior option for an individual’s circumstances. Here’s what you should understand about the FHA vs. conventional loan programs to determine which one makes the most sense for you, including their qualification requirements, potential costs, and financing limitations. FHA vs. Conventional Loans Mortgages come in many different variations, and while none of them are necessarily better than the other ..read more

The Federal Housing Administration (FHA) is a government agency created to stimulate the housing industry and make homeownership more accessible. One of the primary ways it accomplishes those goals is to insure mortgages for approved lenders. There are significant FHA loan pros and cons to help you determine whether they might be a good fit for you. When an FHA borrower defaults, the lender can claim a significant portion of the unpaid principal balance from the government agency. That reduces the risk to the lender, so it’s often easier to get an FHA loan than a conventional mortgage. That sa ..read more

You’ve been scrolling through Zillow and Redfin looking for the perfect place and now you’re ready to find out what it takes to qualify for a mortgage.  You know your credit score plays a big part in this but what about your credit history, debt to income ratio, additional assets, and employment status? Find out what you need to get a handle on and what the best mortgage options might be for you.  The Major Factors Lenders Consider When Considering Mortgage Applications: Purchasing a home is a very long-term commitment, so lenders consider multiple factors when approving someone for ..read more

While there is no universally accepted “minimum credit score” for buying a home, home buyers with a score below 620 will find it very hard to qualify for a mortgage. Each loan program and lender has its own accepted minimums. We’ll dive into many of those options below.  What is the Minimum Credit Score for the First Time Home Buyer? There is no formal standard minimum credit score for buying a house using a conventional mortgage loan. However, the government-backed mortgage loan programs do have requirements and those with a score below 500 will generally not qualify. What constitutes a ..read more

A conventional home loan is the most common loan product offered by mortgage lenders, making up roughly 64% of the market.  Conventional mortgage loans typically require higher credit scores than government-backed loans, but there are also many advantages to going with conventional mortgages. We’ll discuss these factors below. What is the Required Minimum Credit Score for a Conventional Loan? The minimum credit score requirement for borrowers to qualify for conventional loan options is usually 620. In addition to a good credit score, lenders usually impose conventional loan requirements ..read more

Many aspects of the credit scoring system in the United States have remained virtually unchanged since the start of the 1990s, but it’s still a source of confusion for many Americans. In fact, roughly 40% of consumers report having no idea how credit scores work.1 The difference between FICO Scores and credit scores is a common area of misunderstanding. Here’s what you should know on what sets the two apart. What Is a Credit Score? Credit scores are numerical representations of how likely a borrower is to repay their debts in-full and on-time. They’re the results of sophisticated algorithms de ..read more

A good credit score is the key to unlocking many doors in personal finance. You’ll need a good credit score to access the best credit card accounts, get an affordable car loan, and become a homeowner. Unfortunately, 30.9% of Americans have a subprime credit score.1 While you can always recover from having bad credit, it’s usually not a short road. Here’s how long you can expect it to take to improve your credit score by 100 points or more, plus everything you need to know to pull it off. How Long Does It Take To Improve Your Credit Score 100 Points? The length of time it takes to improve your ..read more