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Down Payment Assistance Programs

Overview of Repairing Credit

Cleaning up your credit report is actually quite easy, but requires an investment in both time and money.

Document everything! If you settle an account and it's now paid in full, you need to get your written confirmation from the creditor as your proof to the credit agencies and underwriter of payment in full. The same holds true with repayment plans. Document it!

Before you establish any new payment plan on any type of collection account, you need to review these arrangements with your Lender, Broker, Banker to insure they do not affect your chances to buy a home now. (Unless of course, you don't mind waiting)


MYTH: Paying off any collection accounts will lower your FICO® score.

FACT: You will recover FICO® points paying off THE RIGHT collection accounts.

MYTH: You have to be an expert to repair credit.

FACT: You should have some experience reading and understanding your credit file. However, if you follow this section carefully and understand when you should and shouldn't take action, you can accomplish the same affect that any professional would.

MYTH: Disputing collection accounts permanently removes them.

FACT: Disputing collection accounts may remove a few, if any, but they will be back if they are legitimate debts and if the debt holder is still in business! Conveniently, it always seems to be when you're about to close. Take great care when dealing with "credit repair" companies. Many use methods which are questionable or just don't work.

MYTH: FICO® Penalty is based upon the amount of money being charged off.

FACT: A $10.00 charge off will have just as big an impact on your FICO® score as a $1000.00 charge off. Tough price to pay for ten bucks! Yes, we have seen a $10 dollar credit card payment cost a home buyer OVER 60 FICO® points.

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