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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💰 Self-Directed IRA Real Estate Investments: What Lenders Really Allow 🏡
💰 Self-Directed IRA Real Estate Investments: What Lenders Really Allow 🏡
📈 How to Use a Self-Directed IRA for Real Estate (And What Lenders Approve) 💼
💰 Self-Directed IRA for Real Estate: What Lenders Allow
Investors looking for more control over their retirement funds are increasingly turning to self-directed IRAs (SDIRAs) to purchase real estate. While these accounts open the door to powerful wealth-building opportunities, financing rules can be tricky. Understanding what lenders allow (and don’t allow) can save you from costly mistakes.
✅ What Is a Self-Directed IRA?
A self-directed IRA lets you invest retirement funds in alternative assets beyond traditional stocks and bonds. This includes rental properties, multifamily investments, raw land, and even commercial buildings.
🏦 Can You Get a Mortgage with a Self-Directed IRA?
Yes—but not every lender will allow it. Traditional mortgage lenders usually shy away, while specialty lenders familiar with SDIRA rules can offer non-recourse loans. These loans are required by the IRS, meaning the lender can only claim the property—not your personal assets—if the loan defaults.
🚫 Restrictions to Know Before Investing
1. No Personal Benefit – You can’t live in or personally use the property.
2. No Prohibited Transactions – Family members and disqualified parties can’t directly benefit.
3. Loan Must Be Non-Recourse – Your IRA owns the asset, and you can’t personally guarantee the loan.
💡 What Lenders Typically Allow
· Investment Properties Only – Single-family rentals, small multifamily, or commercial real estate.
· Higher Down Payments – Expect 30–40% down with non-recourse financing.
· Stronger Cash Flow Requirements – Lenders prioritize DSCR (Debt Service Coverage Ratio) since your IRA, not you, is the borrower.
· IRA Custodian Approval – The custodian managing your SDIRA must approve and execute documents.
📊 Why This Strategy Matters for Investors
Using a self-directed IRA to buy real estate can:
· Diversify your retirement portfolio beyond Wall Street.
· Generate tax-deferred or tax-free rental income (depending on Roth vs Traditional IRA).
· Create long-term equity growth while protecting personal assets.
But success depends on working with a mortgage broker who understands non-recourse financing and SDIRA rules. The right lender can make or break your investment strategy.
👉 If you’re exploring real estate investing with your self-directed IRA, reach out today. We’ll help connect you with lenders who know how to structure these loans the right way.
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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/