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My son just graduated from UGA and wants to buy his first house, but his credit is less than perfect.
Chuck G. of Atlanta, GA asks,
Stephen,
My son just graduated from UGA and wants to buy his first house. The problem is that I just became aware he has credit cards in his name and, until recently, has not been paying his bills on time. Since I've heard on the news about all the high-risk mortgage lenders going out of business, can you make any suggestions about his options, given his now less-than-perfect credit?
Chuck, you are correct that in the last few months our industry has seen a bit of a credit crunch, resulting in credit restrictions becoming tighter. The best program for your son may be an FHA loan. If his credit has been fairly good for just one year, FHA forgives credit blemishes from the past. Also, if your son does not qualify on his own, you can co-sign the loan with him. FHA has no pre-payment penalties and the rates are terrific.
If you have any questions regarding FHA loans, please give us a call.
Stephen
If you have a question that you would like me to answer please email me at Stephen@katzmortgageteam.com.
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