Here it is, right out of the 4155 rev FHA underwriting guidelines, "Neither the lack of credit history nor the borrower's decision not to use credit may be used as a basis for rejecting the loan application". You can download the underwriting guidelines from my web site (Lender page). You can also estimate your payment and cash to close with the on line calculator.

If you have collection accounts, you may want to consider a debt negotiation program.

good afternoon.why not call me to finance you?..fha allows for alternative credit to help qualify you....i am in s.e. michigan but i can close you in your own backyard.bob mcclure- mortgage now- farmington, michigan (248) 806-0366.......i am licensed in pa.

Another reccomendation for a qualified mortage originator that can package loans and sell the loans to underwiters is a man I started doing business with may years ago...Rich Spracia at Allstate Financial..call him direct at 412.849.0095 cell. Allstate Financial has the 1st time home buyer program...if you qualify.

Michael-
Currently, even though FHA loans are not driven by your credit score, a lot of lenders have implemented a minimum credit score requirement of 580 or so. It's possible you could have not had a high enough score to allow your loan to be underwritten. Currently, Flagstar retail allows for credit scores as low as 500 to be manually underwritten for approval. You probably will need to submit alternate credit items such as 12 months rent checks, utility statements, etc. to show that you are a good debt payer.

If you would like to call me to discuss it, I would be happy to talk to you about it - no strings attached I promise.

Luke Allison
Flagstar Bank
828-777-8828

Michael,

We have an FHA lender as as well as a program that would allow you to use alternate tradelines such as 12 months worth of rent payments, car payments, insurance, electric etc. Do you have any bad debt obligations on your credit report? Also do you have money to put down? If you should have any questions or need further assistance please let me know.

Andres Munar
Mortgage Specialist
800-839-6186x334 Office
814-308-3276 Cell

There are 2 people that I know that can sometimes work wonders. Casey Smith at Irongate Mortgage and Steve Arthur with Federated Mortgage.
http://www.pghmortgageinfo.com for Casey and http://www.fedmc.com for Steve.

The answers below are good. I want to add some suggestions for what you might do to prepare for your next meeting with a lender.

Do you have any bills that you pay on a regular basis, but that might not be reported to the credit agencies? Think about things like you rent payment to your landlord, the gas bill, the phone bill, an account at the local grocery store, etc. Make a list of those kinds of payments and ask for letters from the people you are paying. They should be able to help you build some positive credit by showing that you are paying these accounts on time.

When you make your next appointment with a lender, ask them if they have any particular wording that they like to see on these letters. You might be surprised about how much effect this can have on your ability to purchase.

It seems to me there is a formal program that helps you convert this type of information into more traditional credit scoring. I can't for the life of me think where I found that information. Maybe somebody else here has a line on that for us.

Eileen's Green Team at Gateway

I would also call another reputable mortgage professional in your area. I would ask your realtor to refer you to a couple local professionals that they use. That way, you will definitely know for sure. Good luck !

Fore more helpful hints, visit our website below. We can always refer you to our FHA specialist in Philadelphia who can do a loan in Pittsburgh as well. Shoot us an email from our website - contact us page below if interested.

Hello Michael,

Try and get an opinion from a couple different Lenders. There must be more to your story. What is your credit scrore? You mentioned you were told you did not have enough positive credit? How much negative credit do you have? Do you know your credit score? If you provide some additional details, more people on Trulia may be able to help. Have you looked into alternative trade lines?