Many new potential home buyers have one or more of these credit troubles. Do you?
- Have no credit score
- Have never established credit
- Have only one credit score
- Have only one or two credit trade lines
If you check even one, you have insufficient credit and may have difficulties in qualifying for a mortgage to buy a new home and stop paying rent.
FHA has a unique product offering that allows a potential home buyer to establish non-traditional credit in order to determine that a borrower has sufficient credit references to help the lender evaluate your bill paying habits.
Ask your real estate agent to recommend you a lender who can provide you with more information on this little known FHA mortgage product.
No Credit Score
FHA prefers that all non-traditional credit references be verified by a credit bureau and reported back to the lender as a non-traditional mortgage credit report (NTMCR) in the same manner as traditional credit references.
Using rental payments as a credit trade line.
Rental housing payments that you have made on time for the most recent 12 months can be added to a borrowers credit report at the request of the lender. Rental payment history carries the most wait of all the allowable non-traditional credit reporting items.
Using Day Care / Child Care as a credit trade line.
The benefits of parenthood just keep getting better. Did you know payment to child care providers may be used as a credit trade line? It sure can request a 12 month payment history from your licensed day care provider and give it to your lender.
Utility Company Reference
Now you have another reason to keep the lights on. If your lights are not included in your rental payment it can be used as trade reference for your lender to get you into your own home.