As with every mortgage transaction one of the main factors is the stats of the borrower’s credit and you are always viewed as having poor, fair, good, and excellent credit depending on your FICO Score. However, there are certain situations that borrower’s will come across that they have very bad credit or no credit at all reported. Here you can be rest assured knowing that we will work with you to develop a plan to get your credit back in order, or find a way to utilize non-traditional tradelines in order to develop a credit history if you don’t have the history of credit. If you were under the assumption that a Mortgage With No Credit wasn’t possible, then you would be mistaken and I am going to go over just what we need to do in order to develop usable tradelines within your credit profile.
One of the first things that must be done when trying to obtain a Mortgage With No Credit is to start establishing credit tradelines, but given you don’t have access to credit cards or loans, how are you going to do this? Well what needs to happen is the development and proof shown for non-traditional tradelines. Here at Loan Consultants, we ask that you supply 3 examples in total from the following list.
If no trade-lines are reporting, or if the open lines are less than 12 months old, we need one alt trade from Group 1 and two alt trades from Group 2:
Rental housing payments, subject to independent verification if borrower is renter.
Utility company reference, if not included in rental housing payment, including gas, electricity, water, land-line home telephone service, and cable T.V. If borrower is renting from family member, request independent documents to prove regular payments like cancelled checks.
Insurance coverage i.e. medical, auto, life, renter’s insurance (not payroll deducted)
Payment to child care providers-made to business providing services
Retail stores-department, furniture, appliance stores, specialty stores
Rent to own stores-furniture, appliances
Payment of part of medical bills not covered by insurance
Cell phone services
12 month history of saving regular deposits (quarterly/non-payroll deducted/no NSF checks reflected), resulting in increasing balance to the account
Personal loan from individual with repayment terms in writing and supported by cancelled checks to document payments.
After you collect your examples of non-traditional tradelines, you are going to need to make sure there aren’t any delinquencies on the housing payments supplied, there are no 30-day late payments on the other tradelines, and finally there can’t be collections on non-medical accounts within the last 12 months. If you can supply these non-traditional tradelines, there is definitely a Mortgage With No Credit option for you. This loan will also have to go through manual underwriting and debt to income ratios cannot exceed 31%/43%. This means that your housing payment can’t be more than 31% of your income and your total debt load on a monthly basis cannot exceed 43% of your income.
If you are looking for a Mortgage With No Credit then you found the right place to get this done. Here at Loan Consultants we pride ourselves in offering mortgage programs for all borrowers and not just borrowers with 20% down payments and excellent credit. We have here to work with you to get you the house you desire. If you’d like to get the process started, please feel free to call or text me any time at 888-900-1020, email me at firstname.lastname@example.org, or apply today at www.loanconsultants.org.