1st Florida Lending Corp., a registered Mortgage Lender
Orlando servicing only the State of Florida, offering over
48 loans programs including Conventional Loans, Non-
Conforming Loans, FHA Loans, VA Loans, USDA Loan,
Self-Employed Loans, Bank Statement Loans, No-Doc
Loans, Reverse Mortgage Loans, ITIN Loans, Rental
Investment Loans, to name a few and specializing in
Bank Statement Loans or “stated loans” requiring no Tax
Return verification and much more. * No broker or
lender fees are for FHA,VA, USDA and Conventional
loan types
Main Office: 2151 Consulate Dr. * Suite 8 * Orlando,
FL., 32837 * Telephone * (800)856-7097 * (800) 655-
1345 * (407) 300-2558 * Fax (877) 401-9955
* Disclaimer: All Loan programs, rates and terms can
change without notice and are subject to credit and
underwriting approval. Loan charts highlight min/max
constraints, assumptions & random scenarios only. We will
always work hard to approve your loan but there are no
guarantees of any kind expressed or implied that any loan
we be approved. Licensed in Florida Only. When Banks
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LEARN ABOUT YOUR CREDIT
What is a credit report ?
Your credit payment history is recorded in a file
or report. These files or reports are maintained
and sold by "consumer reporting agencies"
(CRAs). One type of CRA is commonly known as a
credit bureau. You have a credit record on file at
a credit bureau if you have ever applied for a
credit or charge account, a personal loan,
insurance, or a job. Your credit record contains
information about your income, debts, and credit
payment history. It also indicates whether you
have been sued, arrested, or have filed for
bankruptcy.
Do I have a right to know what's in my report?
Yes, if you ask for it. The CRA must tell you
everything in your report, including medical
information, and in most cases, the sources of
the information. The CRA also must give you a list
of everyone who has requested your report
within the past year-two years for employment
related requests.
What type of information do credit bureaus
collect and sell?
Credit bureaus collect and sell four basic types of
information:
Identification and employment information
Your name, birth date, Social Security number,
employer, and spouse's name are routinely
noted. The CRA also may provide information
about your employment history, home
ownership, income, and previous address, if a
creditor requests this type of information.
Payment history
Your accounts with different creditors are listed,
showing how much credit has been extended
and whether you've paid on time. Related events,
such as referral of an overdue account to a
collection agency, may also be noted.
Inquiries
CRAs must maintain a record of all creditors who
have asked for your credit history within the past
year, and a record of those persons or businesses
requesting your credit history for employment
purposes for the past two years.
Public record information
Events that are a matter of public record, such as
bankruptcies, foreclosures, or tax liens, may
appear in your report
What is credit scoring?
Credit scoring is a system creditors use to help
determine whether to give you credit.
Information about you and your credit
experiences, such as your bill-paying history, the
number and type of accounts you have, late
payments, collection actions, outstanding debt,
and the age of your accounts, is collected from
your credit application and your credit report.
Using a statistical program, creditors compare
this information to the credit performance of
consumers with similar profiles. A credit scoring
system awards points for each factor that helps
predict who is most likely to repay a debt. A total
number of points -- a credit score -- helps
predict how creditworthy you are, that is, how
likely it is that you will repay a loan and make the
payments when due.
Because your credit report is an important part of
many credit scoring systems, it is very important
to make sure it's accurate before you submit a
credit application. To get copies of your report,
contact the three major credit reporting
agencies:
Equifax: (800) 685-1111
Experian (formerly TRW): (888) EXPERIAN
(397-3742)
Trans Union: (800) 916-8800
These agencies may charge you up to $9.00 for
your credit report.
You are entitled to receive one free credit report
every 12 months from each of the nationwide
consumer credit reporting companies – Equifax,
Experian and TransUnion. This free credit report
can be requested through the following website:
https://www.annualcreditreport.com
Why is credit scoring used?
Credit scoring is based on real data and statistics,
so it usually is more reliable than subjective or
judgmental methods. It treats all applicants
objectively. Judgmental methods typically rely
on criteria that are not systematically tested and
can vary when applied by different individuals.
How is a credit scoring model developed?
To develop a model, a creditor selects a random
sample of its customers, or a sample of similar
customers if their sample is not large enough,
and analyzes it statistically to identify
characteristics that relate to creditworthiness.
Then, each of these factors is assigned a weight
based on how strong a predictor it is of who
would be a good credit risk. Each creditor may
use its own credit scoring model, different
scoring models for different types of credit, or a
generic model developed by a credit scoring
company. Under the Equal Credit Opportunity
Act, a credit scoring system may not use certain
characteristics like -- race, sex, marital status,
national origin, or religion -- as factors. However,
creditors are allowed to use age in properly
designed scoring systems. But any scoring
system that includes age must give equal
treatment to elderly applicants.
How reliable is the credit scoring system?
Credit scoring systems enable creditors to
evaluate millions of applicants consistently and
impartially on many different characteristics. But
to be statistically valid, credit scoring systems
must be based on a big enough sample.
Remember that these systems generally vary
from creditor to creditor.
Although you may think such a system is
arbitrary or impersonal, it can help make
decisions faster, more accurately, and more
impartially than individuals when it is properly
designed. And many creditors design their
systems so that in marginal cases, applicants
whose scores are not high enough to pass easily
or are low enough to fail absolutely are referred
to a credit manager who decides whether the
company or lender will extend credit. This may
allow for discussion and negotiation between the
credit manager and the consumer.
What can I do to improve my score?
Credit scoring models are complex and often
vary among creditors and for different types of
credit. If one factor changes, your score may
change -- but improvement generally depends
on how that factor relates to other factors
considered by the model.
Only the creditor can explain what might
improve your score under the particular model
used to evaluate your credit application.
Nevertheless, scoring models generally evaluate
the following types of information in your credit
report:
Have you paid your bills on time? Payment
history typically is a significant factor. It is
likely that your score will be affected
negatively if you have paid bills late, had an
account referred to collections, or declared
bankruptcy, if that history is reflected on your
credit report.
What is your outstanding debt? Many scoring
models evaluate the amount of debt you have
compared to your credit limits. If the amount
you owe is close to your credit limit, that is
likely to have a negative effect on your score.
How long is your credit history? Generally,
models consider the length of your credit track
record. An insufficient credit history may have
an effect on your score, but that can be offset
by other factors, such as timely payments and
low balances.
Have you applied for new credit recently?
Many scoring models consider whether you
have applied for credit recently by looking at
"inquiries" on your credit report when you
apply for credit. If you have applied for too
many new accounts recently, that may
negatively affect your score. However, not all
inquiries are counted. Inquiries by creditors
who are monitoring your account or looking at
credit reports to make "prescreened" credit
offers are not counted.
How many and what types of credit accounts
do you have? Although it is generally good to
have established credit accounts, too many
credit card accounts may have a negative
effect on your score. In addition, many models
consider the type of credit accounts you have.
For example, under some scoring models,
loans from finance companies may negatively
affect your credit score.
Scoring models may be based on more than just
information in your credit report. For example,
the model may consider information from your
credit application as well: your job or occupation,
length of employment, or whether you own a
home.
To improve your credit score under most models,
concentrate on paying your bills on time, paying
down outstanding balances, and not taking on
new debt. It's likely to take some time to improve
your score significantly.
What happens if you are denied credit or don't
get the terms you want?
If you are denied credit, the Equal Credit
Opportunity Act requires that the creditor give
you a notice that tells you the specific reasons
your application was rejected or the fact that you
have the right to learn the reasons if you ask
within 60 days. Indefinite and vague reasons for
denial are illegal, so ask the creditor to be
specific. Acceptable reasons include: "Your
income was low" or "You haven't been employed
long enough." Unacceptable reasons include:
"You didn't meet our minimum standards" or "You
didn't receive enough points on our credit
scoring system." If a creditor says you were
denied credit because you are too near your
credit limits on your charge cards or you have too
many credit card accounts, you may want to
reapply after paying down your balances or
closing some accounts. Credit scoring systems
consider updated information and change over
time. Sometimes you can be denied credit
because of information from a credit report. If so,
the Fair Credit Reporting Act requires the
creditor to give you the name, address and
phone number of the credit reporting agency
that supplied the information. You should contact
that agency to find out what your report said.
This information is free if you request it within 60
days of being turned down for credit. The credit
reporting agency can tell you what's in your
report, but only the creditor can tell you why
your application was denied. If you've been
denied credit, or didn't get the rate or credit
terms you want, ask the creditor if a credit
scoring system was used. If so, ask what
characteristics or factors were used in that
system, and the best ways to improve your
application. If you get credit, ask the creditor
whether you are getting the best rate and terms
available and, if not, why. If you are not offered
the best rate available because of inaccuracies in
your credit report, be sure to dispute the
inaccurate information in your credit report.
What is the Fair Credit Reporting Act?
The Fair Credit Reporting Act (FCRA) is designed
to help ensure that CRAs furnish correct and
complete information to businesses to use when
evaluating your application.
Your rights under the Fair Credit Reporting Act:
You have the right to receive a copy of your
credit report. The copy of your report must
contain all of the information in your file at the
time of your request.
You have the right to know the name of
anyone who received your credit report in the
last year for most purposes or in the last two
years for employment purposes.
Any company that denies your application
must supply the name and address of the CRA
they contacted, provided the denial was based
on information given by the CRA.
You have the right to a free copy of your credit
report when your application is denied
because of information supplied by the CRA.
Your request must be made within 60 days of
receiving your denial notice.
If you contest the completeness or accuracy of
information in your report, you should file a
dispute with the CRA and with the company
that furnished the information to the CRA.
Both the CRA and the furnisher of information
are legally obligated to re-investigate your
dispute.
You have a right to add a summary explanation
to your credit report if your dispute is not
resolved to your satisfaction.
First Time Home Buyers With Bad Credit
Buying your first home with bad credit can be a
challenge. The underwriting approval process is
fairly strict, however there are options that will
help you make the final decision.
The following government assisted loans are
available to help:
FHA loans are designed to help lower income
level families seeking a mortgage. The benefit is
a 3.5% down payment with a minimum credit
score of 580. If your score is below 580, the down
payment is higher up to 10%.
As a first time homebuyer, there are down
payment assistance programs available to you to
let you get into your new home with no money
down.
VA loans are designed for US military veterans.
VA loans allow first time homebuyers to purchase
a home with less-than-average credit with no
down payment, while obtaining low interest
rates. Military personnel, their spouse and
reservists are also eligibile for the VA loan.