Can one qualify for an FHA loan without a credit history?

Asked by Trulia New York, New York Tue Mar 19, 2013

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Javier Meneses’ answer
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Tue Mar 19, 2013
Yes and no. HUD says you can qualify without credit history, but in the real world lenders want to see some sort of credit history. Lenders are able to document what's called non-traditional credit which is used for those borrowers who have no credit history or very little or new credit history. Most lenders are looking more into credit reports, not just the credit scores, but rather the history itself.

What borrowers can do is, if they have no credit or limited credit history, make sure they can provide the lender proof that they have been paying utilities, auto insurance, mobile phone, etc. for the past 12 months, on time. If you can show 12 months calncelled rent checks, that's a big plus as well.

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Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
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Felix A. Gar…, Agent, staten island, NY
Tue Mar 19, 2013
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well with no credit history it would probably be difficult to qualify for any type of mortgage, but I would consult a mortgage broker
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Albert Capoz…, , 10019
Tue Mar 19, 2013
You'll need to show some indication of credit risk worthiness now even for FHA loans. The two answers below are right on the mark.

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0 votes
Fred Glick, Agent, Mountain View, CA
Tue Mar 19, 2013
Not any more.

The mortgage computer needs to see that you have a 640 score in order to approve your loan.

And, it looks like lenders will not do manual underwriting because of the liability.
Web Reference:  http://usloans.com
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Jacques Ambr…, Agent, Forest Hills, NY
Tue Mar 19, 2013
Probably, I'm assuming you don't have negative history. Income will also play a role. At this point you may want to estblish some credit which can help you lower interest rates.
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