Buying a home in Houston (Humble) with NoScore and $8k tax credit question:
I do qualify for the first time home time buyer credit due. Unfortunately, I owe about $5k in back taxes. I haven’t had any credit since about 2003. I did find 3 small collections that I immediately paid off. My credit score from freecreditreport is: 665/656/644. I have a very stable work history and trying to get a 3.5% FHA loan. When two different mortgage lenders pulled my credit report, it showed that I had no score due to not enough credit. Both suggested I contact the non-standard sources and get letters of credit. I provided a list of 4 different sources but neither has been able to find funding. Both lenders then told me to open a credit card and make a purchase to establish credit.
1. Since I owe 5k, can I still get the remaining 3k at closing for an extra down payment?
2. Would getting a personal bank loan from my local bank be as quick in building credit as a credit card? Better choice?
3. Which credit card would update the fastest? How long will it take?
Thanks very much for your reply...it brings up another question...
How much does the "Credit Line" help when determining your credit score? If I setup a secured credit card or two, how much should I open the accounts with? Should I open two of them with 500 a piece or just one with 1000? Which would help my score the most?
Establish credit can take approx. 12 months to do so.
You need to secure several credit cards who report to credit bureau's
If you have been turned down by 2 lenders best focus on credit scores then purchase a home.
All credit cards take approx. 60 -90 days to start reporting agencies.
National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
Lynn911
Didn’t find what you were looking for? Ask a question!
More Q&A about Home Buying in Houston
View all »
Ask a question
|
|
|
|
|||||||||||
|
|
|
|
|
|
Fair Housing and Equal Opportunity