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I have never used my credit can I get someone to co-sign with me?

Also this is my first time buying a home and I have never used my credit if I can get someone to co-sign with me how would I go on doing that?

  • February 15 2012 - Fort Payne
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Answers (7)

It is possible to get a loan with no credit. No credit is better than bad credit. Although, as others have mentioned, this is going to be tough, since you don't have any steady payment history on anything. Although, since your only looking at $30,000 homes, It may be doable. check with a small local bank or credit union. The thing that concerns me is that you're working for cash. Your going to need to show a documented income. Hopefully you have been claiming this cash on your tax returns.

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I would recommend having a 3-6 month emergency fund, plus your down payment, prior to owning a home. Also, be careful about the rent to own you talked about. Rent-to-Owns work out for the best for both parties. Although, many never close. Make sure it's a home you really want, not just the only home you feel you can get. Lastly, make sure that you'll actually be able to get yourself into a position to purchase it, or you will just be throwing away money.
  • February 16 2012
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You need to build credit.  Non-traditional credit will not be an option if you have never paid rent or had any bills in your name.  There are pre-paid credit cards that report to the credit bureaus and will help you establish a credit history.  The most important question to ask when looking into pre-paid credit cards is:  Do they report to the bureaus?  If you can get a pre-card with $300 or so on it, you can use as little as $20 a month, and pay the entire balance in full at the end of the month.  Don't be reckless with the card, it can be as little as $20 a month.  The key is to pay the balance in full at the end of the month and to keep your used balance low.  It will not happen overnight, but you will be able to generate credit, FICO scores, etc.. And that will help you get some credit going.  Good Luck!
  • February 16 2012
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Me and my fiance Holly have been together for three years now, we have stayed with my mother up until three months ago when she went to the nursing home. We split the bills with her and my father but just recently we have been staying in a motel with our 4 month old son. I have worked with one of Holly's family members for the last 5 years making 500 dollars a week cash. I have done my taxes myself using a 10-99, and we have about 2800 dollars in savings, our cell phone is prepaid, we have drove my mothers car she had insurence i have had none in my name or in Hollys. We have been looking at a few homes online and found one we would like to get, it's a foreclosure being auctioned off for 30,900 but it sayes we could rent to own it 10% down and 117 a month what all are we going to have to do and have to make this happen? Please help. Thank you.
  • February 15 2012
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If you are just starting out, the best first step is to learn what helps build your credit.    When I just graduated from university, I had zero credit and even credit cards weren't interested in me because I basically didn't exist in the credit system.   I got a tiny loan, then finally was approved for a secured credit card and worked from there.  During this time I built up a 20% down payment and moved forward until I was ready to purchase a house.    I still am a fiscal fuddy duddy and do most of my life in cash, but just enough to keep something on the credit radar. 
  • February 15 2012
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You haven't rented, had a cell phone contract, paid insurance premiums, or paid utilities? Are you planning for your first home, that you pay the bills, to be a home you purchase? What do you have in savings?
  • February 15 2012
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ok i dont have anything like that not for 12 months we are just starting out and have never did anything like this before and never used our credit
  • February 15 2012
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Do you have any credit at all?  You would also be able to use alternative credit as well if you do not have a credit score.  Even if you use someone else to co-sign at least with most big banks you would still need alternative credit.  Alternative credit if no credit score:

1.  Rental history for the past 12 months
2.  Car insurance showing 12 month payment history
3.  Cable, cell phone, etc. 12 payment history

It is possible to use a co-signer as a non occuppant co-borrower, but they will only be permitted when the the borrower has sufficient credit outlined above, including a 12 month rental history.  If you fit this profile you have a good chance to purchase your future home.
  • February 15 2012
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