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Seeking FHA loan expert

 I have good credit but no credit scores due to not having any open credit lines for over 5 years. FHA loan guidelines state "in the event a borrower does not have sufficient credit on their credit report the FHA will allow substitute forms." Can I qualify for a mortgage?
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September 11 2009 - Portland
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Answers (7)

Best Answer
The question you need to ask yourself is, "How have I paid my bills over the last 24 months?"

Since FHA will be using non-traditional credit, that is it. 
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September 12 2009
You have your answer here already.

I just want to add that if you know you want to buy a home one day soon, apply for credit, open a few accounts and build a score.  Start the process to show you are credit-worthy with some smaller accounts.

Any reason why you have not re-established credit?  If you don't want to be in debt, you can still open accounts, use them and just pay the bills in full.  
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September 12 2009

It just slays me that the best answer is so often what the person asking the question wants to hear!

Gart...FHA guidelines allow for non traditional credit....However, Most lenders have an overlay on the FHA guidelines some simply say that "Non Traditional credit is UNACCEPTABLE"

Your hurdle is not the FHA guideline...Your hurdle is finding a lender that underwrites to the FHA guideline.  My other question would be...what did your credit look like prior to the last 5 years?

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September 12 2009
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I have been living at the same address for 5 five years. I have paid all my bills -- CELL, CABLE, INSURANCE, UTILITY, RENT -- on time. 
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September 12 2009

gart,

You need more than an expert... you need to find a lender that doesn't have a credit score overlay.  That may prove to be the harder of the two!

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September 12 2009
Zillow quotes will most likely not work with not traditional credit lines.  Its best to contact a lender/broker in your area that has knowledge of these loan with non traditional credit.   Start with the top lenders in your area.

You usually need three and they can be in the form of rent, utilities, cell phone, etc...  These are bills that you pay monthly, but don't show up on your credit report.

They are permitted in cases where a buyer has insufficient credit, but it is not used to compensate for poor credit.

Hope this helps.
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September 11 2009
many source of "non tadtional credit" have been eliminated with lender overlays; I would post on zillow qoute and refferance FHA and you have non tradtional credit. to get a jump start on documention read thru this lender letter addressing what is needed. link
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September 11 2009
 
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