Home Buying in Overbrook>Question Details

Kim, Home Buyer in Philadelphia, PA

How can I get pass the underwriter asking for rental documentation?

Asked by Kim, Philadelphia, PA Thu Apr 25, 2013

I reside with my mother the pass three years I do pay rent . Rent is rent right?? I have one credit card 15months and nothing else in name I pay A tutoring service only for 5months no cable electric gas nothing any suggestions ????

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12
Javier Meneses’ answer
So are they asking for non-traditional credit because you only have you tradeline?

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
0 votes Thank Flag Link Thu Apr 25, 2013
Im sure. good questions any one know?
1 vote Thank Flag Link Thu Apr 25, 2013
With many loan programs, you can show the monthly rent coming out of your account and that can pass as proof of on time rent payment. Or if you pay by check you can show cancelled checks. If you don't have this, ask your LO if the Desktop Underwriter requests a rent payment history.

For another credit reference, you can have your cell phone company write a credit reference.

Wes Costello
AnnieMac Home Mortgage
216-690-1038
1 vote Thank Flag Link Thu Apr 25, 2013
It's "get past" not pass.
0 votes Thank Flag Link Thu Mar 20, 2014
When you apply for mortgage your answer to the question for rent payment should be 0 and let the loan officer know you live rent free. When the loan is run through the lenders automatic underwriter system and the approval is given with you living with parents paying 0 rent then you are past the human underwriter, unless the lender has overlays. Mortgage broker would be able to guide you in this respect.
Good Luck!

Hi Judith: It was nice speaking with you. Please email the following to me at your earliest:

1. 2013 & 2012 tax returns along with W-2's

2. Current one month pay stubs.

3. Two months bank statements of accounts from where the funds will come fro down payment and closing costs.

4. Address of the property you are looking to put offer on.

Thanks
0 votes Thank Flag Link Thu Mar 20, 2014
Several of our programs may not require rental history. I do many USDA loans where we don't have rental history and it is not required by underwriting even with limited credit like yours.
0 votes Thank Flag Link Thu Mar 20, 2014
Doing the USDA loans without a rental history, doesn't that only work if the credit score is 640 or greater?
Flag Thu May 7, 2015
Depending on the scenario, if you're doing FHA, you might not even need to show the rental. You could simply be living with family and contributing towards expenses, not necessarily requiring any form of rental verification. Speak to your Loan Officer or consider a new one who can make it happen for 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
0 votes Thank Flag Link Thu Apr 25, 2013
YES ITS FHA ALTHOUGH MY CREDIT SCORE IS HIGH I ONLY HAVE ONE TRADE LINE. AND I'M ASSUMING BECAUSE I HAVE TWO PAID COLLECTION ACCOUNTS FROM SEVERAL YEARS AGO..I'M JUST WONDERING IF I SHOULD JUST HOLD OFF ON THIS PROCESS
Flag Thu Apr 25, 2013
You cannot!. :( Thats why you need our help to get on track the right way! >>>>>>>>>>>> http://www.PhillyStopRenting.com
0 votes Thank Flag Link Thu Apr 25, 2013
I can only answer for my lender...

If you rent from family you MUST show at least 12 months of cancelled checks. You can't show receipts from your Mom, cash withdrawals, etc.

Now...if you have been renting from someone who isn't your family that's another matter. All we do for rent verification is make a phone call.

It sounds like you'll need more alternate trade lines showing 12+ months of positive payment history. No car insurance? Mobile phone? Magazine subscriptions? Have you been paying ANYTHING under an agreement for 12+ months?
0 votes Thank Flag Link Thu Apr 25, 2013
thank you for responding yes I need alternate trade lines which I have none but the credit card.. I thought having nothing in name was good but I found out it hurts you as well..I do pay storage have been for the past 2 years didn't think about that..do you think that will work??
Flag Thu Apr 25, 2013
Also, there is no such thing as getting around an underwriter. It's a matter of what they accept in the absence of rental verification or what they'll accept as retal verification.
0 votes Thank Flag Link Thu Apr 25, 2013
Chances are that if they looking for alternate tradelines, they won't use the rental unless you can show 12 months (or close to) cancelled rent checks.
0 votes Thank Flag Link Thu Apr 25, 2013
Rent is rent...just explain its a verbal lease with your mom...show the canceled checks or cash withdrawals made each month...you don't want to "get past the underwriter" on anything...that would be grounds for default at the worst and mortgage rejection at the least if found out...
0 votes Thank Flag Link Thu Apr 25, 2013
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