Julia, Home Buyer in San Francisco, CA

how possible/impossible is it to get a mortgage with short credit history?

Asked by Julia, San Francisco, CA Thu Jun 27, 2013

My husband and I moved to SF from abroad not too long ago. I have more than 2 years of credit history with 2 active (more than 12 months) and 1 inactive tradelines and a Fico score of 750. However my husband only has a 7 month credit history, with only 1 active tradeline (Fico of 720). I am a bit discouraged because my bank (WF) told me that no matter how good my credit is, until my husband gets 2 years of credit and at least 3 active tradelines we cannot get a joint loan. He says our only options are either getting a loan under my sole name (but with only my salary the amount would be too low), or getting an alternate credit loan but capped at $417K.

I feel really discouraged at this point - I didn't think we would have to wait 18 whole months before we could even begin to hope to qualify... Any thoughts? Is this standard or are big banks just stricter? Aren't FHA loans supposed to have less stringent requirements?

Any advice much appreciated. Thanks so much!

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Answers

24
Marine, I can't believe that you were told that. That's completely not true. So here is how it works, you are (based on what you're saying here and assuming both your incomes qualify) able to qualify for a FHA loan with the way the credit is now. Your husband does NOT need 2 years credit history, but he does require 2 years employment history. If you're looking to qualify for a conventional loan, you guys MIGHT just need to show 12 months cancelled rent checks and/or utility bill payments. Depending on your down payment, it's very possible that you wouldn't even need that.

I would love to help you, I'm available to speak more in detail over a phone call. I often get clients who have been in the US for just several years and have been able to buy homes, not just here in NY but in Various parts of California as well. This is not something that just my bank can do, but rather something that is allowed for almost ever lender who originates FHA and/or conventional loans. It's just that many Loan Officers are not aware of it because they don't run into these scenarios often.

Don't feel discouraged, all you need to do is allow myself or another qualified Loan Officer who can help you, get the opportunity to review all necessary documentation and pre-approve you. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(631) 659-2011 Office
(516) 918-5383 Fax
1 vote Thank Flag Link Thu Jun 27, 2013
I can be of help Kindly contact me at +1(503) 928-5800 for more information.
0 votes Thank Flag Link Wed Jun 8, 2016
Short answer: Go back home!

The long answer is that immigrants is discriminated against in these matters. Even white Europeans. I know, as I am one. I like you, came to the US with impeccable finances, good job, even had my own company.

Since then, I have spent 7 years trying to build credit, have a credit score of 750, but can still not get any loans whatsoever. I have credit cards, the prepaid "secured" ones, as that was all I could get. So one lend back ones own money.

I had half a million dollars in cash, no debt, owned my car and house outright, and was willing to put up house as collateral for a small mortgage or home equity loan, but keep getting declined. The fact that I had 2 decades worth of impeccable mortgage from a European bank, helped nothing.

The credit cards i got have so low limits they are almost pointless. ($400). So I keep using my European ones ive had for over 20 years. Its the same Visa and Mastercard as here in the US, but that dont count.

Instead what is happening, is my car insurance woud go up from $700 year, to $3500 year. Same car, no damage. Because even they start using credit score as basos for the rate. I have not had an accident since 1995, back in europe, but that dont count.

So I ended up buying a lower grade house for cash, when I needed to move, as i couldn't get any mortgage.

Then, I could not insure it, because "the credit report says no real loans". Duh. For 2 months the house had no fire insurance, eventually some 1 person company, which I highly doubt would actually pay out anything in case of a fire, did.

Then, I lost a job opportunity, based on my credit history. I had to "apply" to get water service in the house I bought, and they were almost not approving me for it, for being my age (43), and such short credit history.

I could not get internet installed, cellphone had to be prepaid. My son was not accepted at the school we applied to, as they partially based the application on parents credit worthiness.

I have tried big banks, small banks, credit unions, private lenders, specialty banks, and even banks specializing in foreign nationals with no credit history. No dice. Good credit score? Sure, but too short credit history for my age, and too few credit cards the last 20 years

I could get a car at 17.2% interest rate. No thanks. My European credit cards even have lower interest than that.

I cannot recoup the years i lived in Europe and add it to my credit history. So as I get older, the credit history will always be much shorter than my adult economic life. There is no way to beat this system, it sets immigrats up to fail. I have offered all credit bureaus financial information from my home country, but they arent interested. They sell this information, they have no intention or interest in dealing with individuals who fall between the rules.

Save yourself alot of heartache and trouble, and move home while you still can. Its not worth it.
0 votes Thank Flag Link Tue Jun 7, 2016
Short answer: Go back home!

The long answer is that immigrants is discriminated against in these matters. Even white Europeans. I know, as I am one. I like you, came to the US with impeccable finances, good job, even had my own company.

Since then, I have spent 7 years trying to build credit, have a credit score of 750, but can still not get any loans whatsoever. I have credit cards, the prepaid "secured" ones, as that was all I could get. So one lend back ones own money.

I had half a million dollars in cash, no debt, owned my car and house outright, and was willing to put up house as collateral for a small mortgage or home equity loan, but keep getting declined. The fact that I had 2 decades worth of impeccable mortgage from a European bank, helped nothing.

The credit cards i got, have so low limits they are almost pointless. ($400). So I keep using my European ones ive had for over 20 years. Its the same Visa and Mastercard as here in the US, but that dont count.

Instead what is happening, is my car insurance woud go up from $700 year, to $3500 year. Same car, no damage. Because even they start using credit score as basis for the rate. I have not had an accident since 1995, back in europe, but that dont count.

So I ended up buying a lower grade house for cash, when I needed to move, as i couldn't get any mortgage.

Then, I could not insure it, because "the credit report says no real loans". Duh. For 2 months the house had no fire insurance, eventually some 1 person company, which I highly doubt would actually pay out anything in case of a fire, did.

Then, I lost a job opportunity, based on my credit history. I had to "apply" to get water service in the house I bought, and they were almost not approving me for it, for being my age (43), and such short credit history.

I could not get internet installed, cellphone had to be prepaid. My son was not accepted at the school we applied to, as they partially based the application on parents credit worthiness.

I could get a car at 17.2% interest rate. No thanks. My European credit cards even have lower interest than that.

I cannot recoup the years i lived in Europe and add it to my credit history. So as I get older, the credit history will always be much shorter than my adult economic life. There is no way to beat this system, it sets immigrats up to fail. I have offered all credit bureaus financial information from my home country, but they arent interested. They sell this information, they have no intention or interest in dealing with individuals who fall between the rules.

Save yourself alot of heartache and trouble, and move home while you still can. Its not worth it.
0 votes Thank Flag Link Tue Jun 7, 2016
If you need help qualifying If yo'd like information on what we do go to our site IzmCreditServices.net then contact us.
.
0 votes Thank Flag Link Fri Jan 1, 2016
If you need helpraisng his credit scores anc acquiring a longer history of credit contact us.
IzmCreditServices.net
0 votes Thank Flag Link Fri Jan 1, 2016
A 2 year time period on credit is not essential on either of your ends. Employment is a different scenario though. I recommend reaching out to a local lender. They will be better able to give you a more specific answer in your specific circumstance.
0 votes Thank Flag Link Thu Mar 20, 2014
An FHA loan is a great option if this is your first housing purchase. FHA loans have lower down payments, lower closing costs, and easy credit qualifying so it's smart that you're considering that! As a licensed lender based in California, I am more than willing to help! So if you have anymore questions or if you need a loan feel free to contact me. My information is on my profile page so check it out if you'd like!

Hope this helps and good luck

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Wed Mar 12, 2014
Should be doable. A friend of mine owns The Lenders Network they refer people to lenders they are partnered with that can work with short credit history or low credit scores.

Good Luck!
0 votes Thank Flag Link Sun Nov 24, 2013
Hello Marine,

Please do not feel discouraged. Do you bank with a credit union? If so try speaking with them

You can also try a FHA loan. Keep in mind if you are looking to buy a condo/ townhouse you will have to make sure the development is FHA approved.

I had a buyer once get approved with little credit. Their lender actually used their utility bill payment history to evaluate their credit worthiness.

Like the old saying goes, "there is more than one way to skin a cat"

Hang in there!

Best Regards,
Kawain payne, Realtor
0 votes Thank Flag Link Fri Nov 22, 2013
Good morning Marine,

I'd suggest you speak with a Local Mortgage Banker. An experienced mortgage loan originator (with at least 15 years experience) has the solution to your financing problem. I have closed similar loan scenarios here in New York.

If the credit is the ONLY issue with your husband's qualifications, find that Local Mortgage Banker who can make it happen for you.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Tue Nov 19, 2013
750 is a good score after 7 months


have you got 20% down
0 votes Thank Flag Link Sun Nov 17, 2013
Yes, FHA loans are less stringent.

Please feel free to give me a call if you would like to discuss your options.

Best regards,

Elva Wormley
408-615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS# 331981
0 votes Thank Flag Link Sat Nov 2, 2013
Check with another experienced mortgage broker. There are other options available but only the broker will be able to give you those specific details.
0 votes Thank Flag Link Thu Oct 31, 2013
We have done them with credit history less than 2 years. Call or email for a free pre-approval in less than 10 minutes. We lend our own money and are licensed in 49 states.

We can do: FHA, Conventional, USDA, VA, HARP, Interest Only, Home Equity, Fixed, and Variable. Find out which product is right for you by calling Brad at (855) 415-5626.

Brad Neumann
Sr. Loan Officer
Crosscountry Mortgage Inc.
Toll Free: (855) 415-5626 ext. 5734
Email: bneumann@myccmortgage.com
NMLS# 948036
0 votes Thank Flag Link Wed Oct 30, 2013
I agree with George Langford and many others below, the smaller mortgage shops will be better serving to your needs in this situation.

They typically have access to multiple lending options, with some more willing to take on risk than others.

Most all below have been responding as if you are going to get a conventional loan amount ($417K or lower). It sounds to me like you are looking for something more.

The dollar amount will play a significant role in what is required.

Best to call myself or one of the helpful others below to get a response specific to your situation.

I'm in Santa Barbara, but venture to San Francisco often. Feel free to call me if you would like further information. I'm always happy to have information based calls.

Regards,

Jeff Bochsler
Medallion Mortgage
805.288.6163
0 votes Thank Flag Link Mon Aug 19, 2013
An FHA loan is a great option if this is your first housing purchase. FHA loans have lower down payments, lower closing costs, and easy credit qualifying so it's smart that you're considering that! As a licensed lender based in California, I am more than willing to help! So if you have anymore questions or if you need a loan feel free to contact me. My information is on my profile page so check it out if you'd like!

Hope this helps and good luck
0 votes Thank Flag Link Wed Aug 7, 2013
Marine ~ Looks like you have plenty of loan officers to choose from below. Contact me once you have the loan. Bidding on homes in this market is tricky and it will not cost you anything for my services (which are paid by the seller).
0 votes Thank Flag Link Fri Jul 5, 2013
You can use what is called "alternative credit" to show a payment history. Some of these can include, phone bills, utility bills, internet bills adn other items that do not report to credit.

A clean history of payments will improve your chances of getting a loan approval from the purchase underwriter. Hope this helps.
0 votes Thank Flag Link Mon Jul 1, 2013
We can certainly help you out. Check us out at http://www.TheMortgageOutlet.com
0 votes Thank Flag Link Sat Jun 29, 2013
I would check with a local portfolio or direct lender such as First Republic or Sterling Bank.

Good Luck!
0 votes Thank Flag Link Thu Jun 27, 2013
Wells is not the best place to go in this situation. Call me and I'll give you some people who can help.

Best Regards,

Lance King/Owner-Managing Broker
King Realty Group

lance@king-realtygroup.com
415.722.5549
DRE# 01384425
0 votes Thank Flag Link Thu Jun 27, 2013
Wells Fargo is very black and white with their lending practice as most major banks will be. Going to a smaller direct lender or mortgage broker would benefit you very much. They have portfolio investors that handle this specific situation. I have a few in mind that might work. Feel free to reach out if you have questions or need further guidance. Don't get discourages as its not impossible!

Cheers!
George
Climb Real Estate
415.336.8191
Langford@climbsf.com
http://www.SevenSquaredSF.com
BRE#01719561
0 votes Thank Flag Link Thu Jun 27, 2013
It isn't the first time that I heard that an employer did not take care of their employees!
Makes you think, huh?

call Dominic Silvestri; he's in Concord; 925-260-4984

Good luck
0 votes Thank Flag Link Thu Jun 27, 2013
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