Mortgage with limited history?

I have a 699 (EQ) and a 711 (TU), and I have had a couple different mortgage bankers look at my credit history, and neither of them thought I would have any problems, but I am wondering if maybe they simply over looked the age of my accounts, or does it simply not effect it? My oldest account 1 year 9 months, my second oldest is 1 year 1 month. My third account is a closed auto loan that was opened late last year, and 7 payments were made before it was paid off. I have a new auto loan that was just opened last month as well, which I realize may not count as it has not properly "seasoned".

So, will my limited credit history create any major problems, or do I have enough to be safe? For what it is worth, my DTI will be very conservative (my only obligation is a $330/month car payment, my income is $35k).
  • July 12 2011 - South Bend
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (5)

Mark -

Even though the old auto loan never reached "one year" maturity? It was only seven months, plus another month if you count the new loan (first car was a total loss, replacement was purchased immediately after, no gap).

Also, can the trade line requirements be offset by other things? My DTI and ratios will be very favorable, and I will have a few months reserves.

Over all, I am not too worried. I know these things have a tendency to fall into to place. It is just a heck of a lot less stressful to have some assurance.

  • July 13 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

The auto loan should be fine to count as a third trade line especially when the new one shows up to establish a longer history. I really don't think you will have any issues.

Go for it!!
  • July 13 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I do have a third, I just dont recall what it is, I want to say 714. The two I have are the two I can pull myself. The third was obtained through a very helpful lender. Sorry if I have them mixed up. I can never remember if it is EX that I can pull, or if it is EQ.

As for the third line, I am struggling with that. I pay rent, utilities, etc, but I do still live at home. I have an agreement in place, in writing, with my parents, and I pay a pre-determined percentage of each bill, as well as $230/month in rent, and I cover my portion of my auto insurance and cell phone, even though they are on their plan. It saves money that way. I dont have a single thing in my name, other than my cards and my auto loan, so I doubt all of that record keeping will help me, especially since I frequently pay in cash.

I am certainly open to suggestions. It is hard to believe that life gets going so fast that little things escape you. A year ago I never had any interest in buying. If I planned out better, this would be a non-issue.

My other idea was to get on my fiance's loan, which would be a strong third line, but it would mess with my DTI to much for me to be comfortable. We discussed her signing onto the loan so we could count her income and reserves, but her DTI is horrid, as she has several secured loans out that she pays for through her savings, not her actual income.
  • July 12 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

FHA also allows for "alternative credit" things like cell phone bills and gas bills.   It's hard to say without seeing your whole picture.  I think you'll be ok.
  • July 12 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Joshua, 

FHA requires a minimum of 3 trade lines with at least a 12 month history for each.  You will need 12 months on a third trade line.  You only mentioned two credit scores.  Do you have a third?  FHA requires a borrower to have 3 credit scores also.  Let me know if you have additional questions.   
  • July 12 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.