Question : How long to get a home loan with no credit history?
How long of a credit history do you need to establish to be considered for a home loan? There is no bad credit history, just haven't established credit with anyone.
- asked by BellyRubz
All Answers:
Answer #1
you need a credit history in order to get a home. Some consider no credit history as bad; where isthe risk. Just apply for a credit card and youcan get a credit history.
- answered by sunshine23511
Answer #2
If you have no normal established credit history,you can still qualify for FHA loans, and severalconventional A-paper Fannie Mae loans, as well asmany other bank products.What they will typicallydo is try to build a credit history from what youare already paying. A documentable rental historyis the first place we would look. Next, yourutilities. If you have been paying your gas,electric, car insurance, cable, cell phone etc...on time (no more than 30 days past the due date),they can use them as "tradelines". In general,they would want 2-3 utility-type accounts on topof a rental history. No rental history, 3-5. Butlack of credit is not sufficient reason to declinean FHA loan. That's right in their guidelines. If you have a history of saving money, like $100per month into a savings account, they can treatthat like a tradeline. Getting a statement fromyour neighborhood grocer that he has granted youcredit that you've paid in a timely fashion cansometimes even work.Talk to a couple mortgagebrokers, and a couple big bank loan officers aswell. The big banks have community lendingrequirements they have to meet, and often haveprograms specifically designed for people withzero traditional credit history.Avoid anyonetrying to stick you into a 2 year ARM (2/28, 3/27are some numbers you'd hear), you shouldn't needto take a "sub-prime" loan just because of this.
- answered by fukinluckyfuker
Answer #3
You can use alternative trades such as utilitybill,car insurance, cell phone, etc.If you have 3to 4 of these in your name that have been paid ontime for 12 months that can be usedas anequivelant to a 620 credit score. And incomewilling you can purchase a home.
- answered by staceydian
Answer #4
You may have to go with a hardmoney lender; youwould need 30% down I believe, or 30% gift ofequity. For example, buying a house worth 100kfor 70,000 dollars.
- answered by the dream
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