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Answers (11)
- Joe Harris, "Joe Harris"
- Contributions:48
I have done many loans using Alt credit. For awhile, very few lenders were allowing loans without a credit score, however, I have a few now that will entertain an application using alt credit and their guides are very clearly outlined. If the loan makes sense, then it has a very good shot of being approved.
One thing that I would suggest is working with a broker/lender who will get you fully underwriten and credit approved, prior to shopping for a home. This way you do not have to go through the motions of looking for a house, putting in offers, getting a contract accepted, and putting money into inspections, appraisals, and other items without first knowing if you are approved. I have gotten my borrowers credit underwriten in the past, and it allowed them to either shop with confidence, or set forth a clear plan to get approved in the future. Good luck!
One thing that I would suggest is working with a broker/lender who will get you fully underwriten and credit approved, prior to shopping for a home. This way you do not have to go through the motions of looking for a house, putting in offers, getting a contract accepted, and putting money into inspections, appraisals, and other items without first knowing if you are approved. I have gotten my borrowers credit underwriten in the past, and it allowed them to either shop with confidence, or set forth a clear plan to get approved in the future. Good luck!
- Clay Branch, "Georgia Loans"
- Contributions:7820
Meshanne, it sounds like you have the qualifications to get an FHA loan without a credit score, and Erez has listed what he needs to underwrite it. Just contact him, get preapproved, and buy a house. $135K in Cape Coral should get you a 3BR house with a pool! Good luck.
- Liberty Mortgage
- Contributions:470
Your loan is doable- What will be needed are alternative tradelines which you indicate you have. We need 12 months cancelled checks, 12 months electric bills, and proof of car insurance and phone bills. What is done next is called a "supplemental" whereby a credit will be reissued with those accounts. That takes about 1 week- What's done next is your loan is then manually underwritten. Ratios should be around max back end of 43%.
- Meshanne
- Contributions:5
Thanks much for all the help. At this point we don't really know where to go from here. We've never done this before and are a little lost now.
Will I get accurate quotes on Zillow with all our info in the notes? I ask that because it won't accept a request without a credit score.
Thanks again.
Will I get accurate quotes on Zillow with all our info in the notes? I ask that because it won't accept a request without a credit score.
Thanks again.
- Timothy Sutherland, "SunTrust"
- Contributions:619
FHA has a specific written directive on the documentation needed when there is no credit/no credit score. ML2008-11
guidance on FHA loans without traditional credit: (link):
http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/MORTGAGEE_LETTERS/2008_MORTGAGEE_LETTERS/08-11ML.DOC
guidance on FHA loans without traditional credit: (link):
http://portal.hud.gov/pls/portal/docs/PAGE/FHA_HOME/LENDERS/MORTGAGEE_LETTERS/2008_MORTGAGEE_LETTERS/08-11ML.DOC
- don bro, "Broker_Dave"
- Contributions:41
I think that you should apply for a loan if you were told by a mortgage broker that you could not get a loan. The reason that I say this is because we do not underwrite mortgages, I think you should at least have the oppertunity to get a loan, package everything neatly together and let the underwriter decide.
- Clay Branch, "Georgia Loans"
- Contributions:7820
Several lenders still offer no scores with alt credit, rent plus 3 others. This may sound stupid but I believe you could use the alt credit / no score route if no scores at all, but pulling 1 score may screw it up.
- don bro, "Broker_Dave"
- Contributions:41
If you had a score before then you will still have one.
Not having credit cards can be countered by various alternate credt methods.
Down payment looks fine, but some closing costs might need to be rolled in somehow.
Have you tried to pull your credit at www.annualcreditreport.com It is free and when you pull your own credit it does not change your score.
Not having credit cards can be countered by various alternate credt methods.
Down payment looks fine, but some closing costs might need to be rolled in somehow.
Have you tried to pull your credit at www.annualcreditreport.com It is free and when you pull your own credit it does not change your score.
- Frank Cutruzzola, "frankcutruzzola"
- Contributions:9
FHA is a insured by federal government loan. However, it is a loan that needs to be made by a lender. So although, FHA does not require a score, the lenders providing the funds do require certain guideleines in order to approve a loan. FICO scores are used to evaluate the "risk" associated. So depending on the level of risk, various lenders will deside whether they want to make the loan or not. Right now, a middle score of 620 is the most popular FICO being used. Some require a higher score, like 640. A few only require a 580 or 600, however other criteria are tougher, like Debt-to-Income ratios and type of accounts vs. collections on the credit report. There is no short-cut. Best advice is to get your credit evaluated and us a good credit firm should you need to get professional help.
- Kevin Toups, "TabascoKajun"
- Contributions:110
Is an FHA loan possible without credit scores?
My husband has had steady work for well over the last 5 years, currently makes $47000 a year and I am a stay-at-home Mother of 3. We have $6000 to put down and are looking to buy in Cape Coral, FL for around $130k.We first looked into it on 4/17/09 and pulled a score of 636, but time is flying and now we can't pull a score. We've never had a forclosure, bankruptsy or eviction. We have no credit cards but our last loan was paid off on 07/28/08 and is listed in good standing on Transunion.
We have tax paperwork and letters showing our payments and good standing accounts with our electric and phone companies over the last 12 months, along with all of our rent receipts also showing good payment and standing.
Is there any hope of us getting a mortgage? If so, where do we start? Who does manual underwriting?
Thanks much for your time and advice.
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