Keller Williams Realty Signature Partners
With no credit, like zero credit (no collections, no judgments, no bankruptcies), you can use alternative credit as stated below. They may limit your income to 40% of the grossed up amount to qualify for the loan. In this case, around $500 minus taxes, minus mortgage insurance, minus home insurance. This puts you into a $60k home if you make that much.
Try a USDA loan for 100% financing with no mortgage insurance. They have great programs. The credit requirement or lack of is very liberal.
Best bet? Lease purchase a house for a year and get your credit going as stated using secured credit. Save money so you can fix things when they break down. I think it would also benefit you to take a first time home buyers course offered by HUD.
I am not aware of any lenders who will approve a Primary borrower with no credit score. Under FHA, we will allow a Co-Borrower to not have a credit score, but the owner occupant Primary Borrower must have an acceptable credit score.
For an FHA mortgage, most lenders require a 640+ credit score for the last 3-4 years now.
Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.
The 3.5% minimum down payment can be from the borrowers own funds or it can be gifted from a family member. Two months of reserves for the PITI (Principal + Interest + Taxes + Insurance) payment + HOA Dues will be required. This must be from the borrowerâ€™s own funds and not a gift. FHA loans will allow a seller contribution toward closing costs/pre-paids of up to 6% of the sales price.
To build positive credit, you typically need to have 2-3 trade lines reporting for 12-24 months. There should be no late payments or other derogatory items reported in the last 12-24 months. On your Revolving credit accounts, your outstanding balance on your monthly statement should not exceed 30% of the credit limit.
If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
The social security income fine but generally most lenders require that you have some credit and a credit score of at least 600.
Solid Source Realty Inc
No credit can be overcome with Alternative Credit. Utility Bills. Cell Phone, Etc.... can be used to establish a payment history if your in a pinch. In the mean time you can help your self establish Credit by getting yourself a Secured Card (google Secured Cards for banks that offer them). A Secured Card is essentially a Savings account tied to a Credit card vs. a Check Card. They require no Credit Pulls to establish and once in place will quickly place you in a credit scoring model.
If you need any help with your move to Atlanta please let me know, I'd be happy to help.
Senior Mortgage Consultant
Cornerstone Mortgage Group
6151 Powers Ferry Road NW
Suite 610 Atlanta GA 30339