Home Buying in San Antonio>Question Details

Gilbert Rodr…, Home Buyer in San Antonio, TX

if you are a first time home buyer and have no credit, but have a good job to pay the mortgage each month, is it possible to buy a home in your name?

Asked by Gilbert Rodriguez, San Antonio, TX Thu Apr 29, 2010

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Gilbert, you have taken the first step and that is asking for information. I did not notice anyone asking if you have savings. You will need anywhere from 4 - 10% cash to pay for closing costs and a down payment. Are you obligated by a lease where you now live? When will it expire? A written report by your landlord showing your payment history will help also.
If you have a checking/savings account, check with that bank. If I can help, give me a call.
Ralph 210-473-1136
1 vote Thank Flag Link Thu Apr 29, 2010
Good Morning Gilbert,

Well, the first thing I have to ask you is...are you sure you have no credit? Most people don't realize that they might have credit they didn't realize they had. Have you ever bought a car? Do you have a cell phone bill in your name? Each little thing you do can actually build you credit.

Your best best is to get with a Lender first and find out just where you stand. Sometimes if you have absolutely no credit, you can quickly go sign up for a credit card and use it sparingly and pay it off each month. This will take just a couple of months and as long as you are consistent, you can build up a credit history that a lender should be able to work with. That, along with your good job and a little cash saved up could very well get you into a home.

If you have any further questions, or would like me to recommend a good lender to you, please feel free to call me.

Brenda Mullen
Realtor(r), ABR(r), e-Pro
Home Team of America
1 vote Thank Flag Link Thu Apr 29, 2010
Hi, Gilbert,

Lots of answers! No one mentioned that, if you have a family member with good credit, they can sign with you. As you build your own credit over a few years, then you may be able to refinance under your own name. Again, a good lender will walk you through all the alternatives. They WANT to lend you money, and some are very good at finding a way to do that.

Web Reference: http://TellEllen.com
0 votes Thank Flag Link Sun May 16, 2010
That really depends. I am a mortgage broker and a Realtor in Austin. Some lenders will allow us to manufacture a credit score for your using cell phone and utility bills. This would enable you to get approved immediately and not have to wait for traditional guidelines that typically want a minimum of 2 trade lines that are at least 12 months old.

If you have any questions please feel free to give me a call as I lend throughout the state of Texas.
0 votes Thank Flag Link Thu May 6, 2010
A good paying job and a decent down-payment are all that you'll need to buy with seller financing. You won't have to waste time getting credit cards, borrowing small amounts, or doing anything else extra to qualify. Another benefit for buying with seller financing is that you get to work directly with the one who will underwrite that loan, so you won't have to worry about anything getting "lost in translation".

You're also not restricted to making offers only on listings that explicitly mention the seller is willing to offer seller financing; you can make offers with seller financing on other properties too. If you don't already have an agent, then get one who's familiar and comfortable with creative financing.
0 votes Thank Flag Link Wed May 5, 2010
Good morning, Gilbert,

While all of these answers have kernels of truth in them, they all should have said : First, contact a loan officer. He can tell you if you have any alternative credit that will enable you to buy. If you contact me at: mvoulgaris@cbharper.com, I will give you the name of a specialist in this field.
0 votes Thank Flag Link Wed May 5, 2010
0 votes Thank Flag Link Sun May 2, 2010
Hello Gilbert,
you need to sit down with your local bank and see what programs they have for you. Also get your current credit score to know where you currently stand. You are eligible for a free credit report each year. Once you know where you are you can know the steps to get you on track. I wish you well.
Web Reference: http://www.fabailey.com
0 votes Thank Flag Link Thu Apr 29, 2010

It's very hard to accomplish getting a loan anymore w/out any established credit. I've had 4 clients this year already run into that same situation. In fact, I closed one client's house this year that took my advice 5 years ago. Now obviously you won't have to wait that long, but they decided to. Usually it will take a solid 6 months to establish credit the way I recommend.

Go to your bank. Ask for a secured line of credit for $1,000. Take that $1,000 and put it safely in your savings account. Then have them draft your regularly minimum required payment out from that account where the money is. Let it happen for 6 - 8 months. Then take the remainder out and pay the balance off. (of course you're gonna have to add more money to pay off the balance since you were also paying some interest).

That has worked many, many times! Of course as a disclaimer, check with a loan officer as well if you have questions.

God bless,
Web Reference: http://www.eXposedHomes.com
0 votes Thank Flag Link Thu Apr 29, 2010
Hi Gilbert,
This is a very good questions, and you've gotten some great answers. I just wanted to add that I helped another first time homebuyer with very little credit buy her first home about a year ago. She didn't have any credit cards/car loans etc. in her name, but she did have a cell phone bill that she paid monthly. With this small bit of "credit" and her solid job and income, we were able to get her pre-qualified and into a very nice home. Please let me know if you have questions or if you'd like me to refer you to a great lender that can help, please let me know. Good luck, and happy house hunting!

Kristen Alexander, REALTOR
Keller Williams Legacy
210.391.7323 Direct
0 votes Thank Flag Link Thu Apr 29, 2010
Contact a mortgage broker it depends on your file could be "alternative credit" phone, electric, other bills might work on your behalf.

You would need 2 years employment, 3.5% or more down payment, debt / income ratio in balance.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Thu Apr 29, 2010
The Dave Ramsey program tells people to have no debt and cut all credit cards up. Sounds good unless you want to buy a houqse. YOu need to get a credit card, charge on it monthly, and pay it off in full immediately. Banks want to see that you can handle credit... not that do don't owe anybody money - sounds weird, but that is the straight facts.
If you have no credit score, which is very possible if you have not had any rotating credit or loan payments (car, boat, etc..), then you need to get some creit. God get a card, even if you have to deposit $500 and then charge on your own money. Once you have one card, getting others is easy. But remember - pay it off in full each month. I have a card I use for groceries only, one for gas only, one for my business only, and one for my personal use... but I have no balances on any of them. Do that, and you will have credit fast - then you can buy.

Talk to a great lender - they will tell you the same. I do have a great lender who can help you accomplish your goals. Let me know if I can help!

Web Reference: http://CallDannyT.com
0 votes Thank Flag Link Thu Apr 29, 2010
Hello Gilbert,

The previous answers are all good. If you have a utility bill in your name, this also counts as credit. So it is possible that you have more credit than you give yourself credit for! lol

Another option is finding a seller offering owner-financing. There are a few homes out there where you will find a seller willing to finance the property for you since you have the income to pay each month.

Hope this helps! Let me know if I can be of assistance!

Amanda P. Herring
Realtor-Broker, ABR
(210) 771-8608
0 votes Thank Flag Link Thu Apr 29, 2010
Seller financing is also another option for you.
0 votes Thank Flag Link Thu Apr 29, 2010
Gilbert I have a great lender I can refer you to and I'm certain he can get you headed the right direction so we can find you a home. Email me your contact information if you would like for him to contact you tomorrow. My email is sallycresswell@yahoo.com.
0 votes Thank Flag Link Thu Apr 29, 2010
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