- 1). Get a copy of your credit report to determine just how adverse your credit is. Get the report from the website Annual Credit Report (see Resources). The site is authorized by the Federal Trade Commission to offer free reports as required by law. View and print your report directly from the website after entering information about your identity. Or order by mail or telephone by following instructions on the homepage. Order a copy of your credit score separately by following instructions included with the report.
- 2). Find negative information on your credit report such as charge-offs and past-due accounts. Make payments to bring the accounts current and resolve any old debts or judgments held by debt collection companies. Virtually all mortgage companies--including FHA lenders--will require you to be current on all your existing obligations before home loan approval.
- 3). See a housing counselor at a nonprofit credit counseling agency, such as those affiliated with Consumer Credit Counseling Service. Your bank or credit union can refer you to agencies in your area, or contact community organizations such as the Urban League or United Way for a referral. A nonprofit housing counselor can make additional recommendations for improving your adverse credit after a careful review of your finances. The services are often free. The counselor can also refer you to lenders in your area offering FHA financing.
- 4). Contact an FHA lender and apply for a home mortgage loan.
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