Tips on How to Improve Your Credit Score
Hey folks, it's time to get real about your credit score. If you're anything like me, you probably don't pay much attention to it until it's time to apply for a loan or credit card. But did you know that your credit score can make or break your ability to obtain a mortgage loan?
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When you apply for a mortgage loan, lenders take a close look at your credit score and credit history. They want to know if you're a responsible borrower who will pay back the loan on time and in full. A good credit score can help you qualify for a mortgage loan with a lower interest rate and better terms, while a poor credit score can make it more difficult to get approved and result in higher interest rates and less favorable terms.
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In short, your credit score is one of the most important factors that lenders consider when deciding whether to approve you for a mortgage loan. By taking steps to improve your credit score, you can increase your chances of getting approved for a loan with better terms and save yourself thousands of dollars in the process.
1. Check your credit report regularly
This is a no-brainer, but it's worth repeating. Make sure to check your credit report for any errors or fraudulent activity. You can get a free credit report from each of the three major credit bureaus every year, so take advantage of it.
2. Pay your bills on time
This one seems obvious, but it's worth emphasizing. Late payments can have a big impact on your credit score, so set up automatic payments or reminders to make sure you're always on time.
3. Lower your credit utilization ratio
Your credit utilization ratio is the amount of credit you're using compared to your credit limit. Aim to keep your utilization ratio under 30% to improve your score.
1. Check your credit report regularly
This is a no-brainer, but it's worth repeating. Make sure to check your credit report for any errors or fraudulent activity. You can get a free credit report from each of the three major credit bureaus every year, so take advantage of it.
2. Pay your bills
on time
This one seems obvious, but it's worth emphasizing. Late payments can have a big impact on your credit score, so set up automatic payments or reminders to make sure you're always on time.
3. Lower your credit utilization ratio
Your credit utilization ratio is the amount of credit you're using compared to your credit limit. Aim to keep your utilization ratio under 30% to improve your score.
4. Increase your credit limit
If you're struggling to keep your credit utilization ratio low, consider asking for a credit limit increase. Just make sure not to use the extra credit as an excuse to spend more.
5. Diversify your credit
Having a mix of credit types (like a credit card, auto loan, and mortgage) can improve your credit score. But don't open new accounts just to add diversity - only take on credit that you actually need and can handle responsibly.
4. Increase your
credit limit
If you're struggling to keep your credit utilization ratio low, consider asking for a credit limit increase. Just make sure not to use the extra credit as an excuse to spend more.
5. Diversify your credit
Having a mix of credit types (like a credit card, auto loan, and mortgage) can improve your credit score. But don't open new accounts just to add diversity - only take on credit that you actually need and can handle responsibly.
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🏠 House Hacking Loan Options: Live for Free While Building Equity 💰
🏠 House Hacking Loan Options: Live for Free While Building Equity 💰
💡 How to Buy a Home and Pay $0 in Rent Using House Hacking Loans 🏘️
🏘️ House Hacking Loan Options: Buy Smart & Live Free
If you’ve ever dreamed of owning a home and reducing your housing expenses to zero (or close to it), welcome to the world of house hacking. This real estate strategy is perfect for first-time buyers, veterans, investors, and even self-employed borrowers looking to make smart financial moves.
What Is House Hacking?
House hacking is the practice of buying a property—typically a multifamily home, duplex, triplex, or fourplex—living in one unit, and renting out the others to cover your mortgage. In some cases, house hackers purchase single-family homes and rent out rooms to roommates.
This isn’t just about saving money. It’s about building wealth through real estate while minimizing out-of-pocket living costs.
🔍 Top Loan Options for House Hacking
Here are the most popular mortgage programs that make house hacking possible:
1. FHA Loans (3.5% Down)
· Perfect for 2–4 unit properties.
· Lower credit score requirements.
· Must live in one of the units for at least one year.
2. VA Loans (0% Down)
· For eligible veterans and active-duty military.
· No mortgage insurance.
· Can be used on 2–4 unit properties if one unit is owner-occupied.
3. Conventional Loans (5–20% Down)
· Ideal for buyers with stronger credit and income.
· Can be used for single-family homes with roommates or small multifamily properties.
4. HomeReady & Home Possible
· Fannie Mae and Freddie Mac low-down-payment options.
· Income limits apply but perfect for first-time buyers.
5. Bank Statement Loans (For Self-Employed)
· Use business or personal bank deposits to qualify.
· No tax returns needed.
· Useful for investors and gig workers.
💡 Pro Tip: Use Rental Income to Qualify
Most house hacking loan programs will allow a portion of the projected rent from the other units (or rooms) to count toward your income. That means you can qualify for a larger loan—even with modest personal income.
👷 House Hacking Renovation Loans
Want to buy a fixer-upper and house hack it? Consider:
· FHA 203(k)
· Fannie Mae HomeStyle
· These renovation loans allow you to finance repairs and upgrades into the loan.
✅ Final Thoughts
House hacking is one of the smartest ways to start building a real estate portfolio while living affordably. Whether you're a young professional, a military veteran, or a side hustler looking for financial freedom—there’s a loan option to help you house hack your way to wealth.
👉 Ready to explore your financing options? Contact Medallion Mortgage today.
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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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Copyright ©2021 | Mortgage Viking Team
Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Copyright © 2021 | Medallion Funds
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014
Corporate NMLS NMLS # 1825831 | Company Website: https://medallionfunds.com/bill-rapp/
Copyright ©2021 | Mortgage Viking Team Licensed to Do Business | NMLS # 228246
This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply
Corporate | NMLS ID NMLS # 1825831
Corporate Address : 2651 N. Green Valley Pkwy STE. 101 Henderson, NV 89014 https://medallionfunds.com/bill-rapp/