Mortgage loan with no credit history, but good job

Asked by Sergey, Bothell, WA Thu Dec 15, 2011

Hi,
I've recently relocated to this area with my family and we decided that we want to buy a house on the Eastside of Lake Washington.
I have a good employment (Microsoft), that will easily cover monthly payments on the loan. The problem is that I don't have credit history in the US (have a credit card for 1 month).
We have a funds to cover 10-15% of the downpayment (maybe 20, but that might be tough), about half of this money is earned, other is gift funds.
Can anybody suggested any bank/credit union that can find a program for my situation?
(also, I rented an apartment in Russia, and here for 3 months in summer 2010, always paid in time).

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20
John Manuwal’s answer
John Manuwal, Agent, Bellevue, WA
Wed May 2, 2012
Sergery,

Welcome to the area. I think you have a lot of good answers already but I thought I would add my two cents. I’ve used Washington Federal and other banks that often keep their loans. That way they can say what they want and give out loans know one else wants to take. It can be a win win for everyone if done right. I would check out the FHA first then a local bank.
Good Luck!

John
0 votes
Jirius Isaac, Agent, Kenmore, WA
Thu Dec 15, 2011
Sergy,
Sorry I am late to the conversation. My mother left for Arizona & I have been busy with her all day. I am both a Loan originator & a real estate broker, so I can help you get started right away. We can work at establishing your credit as well as look at alternative to normal credit options loans. These alternative loans depend a lot on details of your individual case. If you want to consult with me, I would be happy to do that. Please email me or give me a call at 206-841-9976

Take care,
Jirius Isaac
Web Reference:  http://www.metromgi.com
1 vote
Dan Tabit, Agent, Issaquah, WA
Thu Dec 15, 2011
Sergey,
Welcome to the area. We have lots of recent arrivals at Microsoft and other employers in similar situations. I'm working with some great lenders right now who do this type of loans and can obtain credit from alternative sources. Feel free to contact me if I can be of help.
1 vote
Thomas Martin, Mortgage Broker Or Lender, Hollywood, FL
Sat Nov 19, 2016
We can get borrower approved using 4 alt trade lines including proof of timely rental payments to build a credit history. Alt trade lines include letters/proof of payment history from direct service providers including electric, water, cell phone car insurance ect proving a 12 month payment history with no 30 day late payments.

We provide FHA/VA loans all the way down to a 580 fico. As a licensed real estate broker and mortgage broker over 10 years i can answer any questions you have throughout the process.

US Mortgage Lenders - Thomas Martin
NO CREDIT SCORE FHA/VA Loan Approvals 7 days a week
PH: 954-667-9110
http://www.florida-mortgage-lenders.com/
0 votes
Toni Miller, Home Buyer, Jacksonville, FL
Fri Nov 8, 2013
http://www.florida-mortgage-lenders.com/
Your probably curious under what conditions are needed qualify for a Florida home loan with no trade lines or no credit Score? Below, we have listed the no trade lines and no credit score Florida home loan requirements:

The maximum no credit score Florida home loan debt to income ratio is 31/43. For no credit score Florida loan applicants the maximum ratio 31% means no more than 31% of gross monthly income can be allocated towards the newly proposed housing expense. And, 43% means no more than 43% of your gross monthly income can be allocated for the newly proposed housing expense + plus all other monthly payments on your credit report.

In addition, No credit score Florida home loan applicants must settle or pay all past collections in full.
Loan applicants must provide a minimum of 3 alternate trade lines plus number 12 months canceled checks or VOR verification of rent from a management company. 3 alternate trade lines include letters from direct service providers or a payment history that you have been on time for the last 12 months. Direct service providers include letters from electric, water, cable company, cell phone ect. letters must be year to date with your name and address showing timely payment history for the past 12 months.
Must have a down payment 3.5% of the purchase price.
http://www.florida-mortgage-lenders.com/index.php/no-credit-…
0 votes
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Fri May 24, 2013
Good afternoon Sergey,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.
http://www.consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes
Account dele…, Agent, Bothell, WA
Thu May 23, 2013
Sergey,
I am quite bit late to this conversation but if you are still looking to buy a home I know a few lenders I could recommend. Please feel free to contact me- 2062717446. Thanks.

Sincerely,
Saili Bhope
KWB
0 votes
Amy Paula, Agent, Miami, FL
Wed May 22, 2013
0 votes
Joe Jonart, Both Buyer And Seller, Seattle, WA
Wed Jun 6, 2012
Sergey,

Welcome to the area. I have worked with a lot of the builders in the area in Snohomish county and king County. It sounds like you've narrowed the area down of where you want to buy. I have a good network of professionals that I work with and have worked with for years. I have amazing realtors that specialize in the East-side and we have worked with a ton of Microsoft clients. I have been in financial services for over 15 years and can help put you in touch with the right lender for your situation.
here are a couple links if you need to get started right away:
http://tinyurl.com/shortform-JJ

I have offices in Bellevue, Renton and Seattle as well.
Please let me know if we can be of service. I'm always looking to help those in the community and being from a different country as well I know the joys of living here and abroad.

искренне
0 votes
Neil C., , Atlanta, GA
Wed Dec 21, 2011
You'll have to wait to establish your credit before you can buy, unless you can get a bridge loan from a lender that does not require a credit score and will look at the other facts you have presented. Once you establish your credit, you can refinance out. I know of a company that made a bridge loan like this in Atlanta, Georgia called The Westmoore Group http://(www.westmooregroup.com). They are licensed for owner occupied lending. I'm not sure if they are operating in Washington, but you may be able to find a similar lender in your area.
0 votes
Annette Levi…, , New York, NY
Fri Dec 16, 2011
With a H1B visa, we can use a foreign credit report. You will be able to get a FHA mortgage. You can contact me if you need help in getting a mortgage.
0 votes
Sergey, Home Buyer, Bothell, WA
Fri Dec 16, 2011
Thanks for the answers.
I was relocated from Russia on H1B visa.
0 votes
Annette Levi…, , New York, NY
Fri Dec 16, 2011
Sergey,
Where did you relocate from? Are you a citizen of the US or on a visa? These are some factors we take into consideration. A foreign credit report can sometimes be used.
0 votes
Karen Mcknig…, Agent, Kirkland, WA
Thu Dec 15, 2011
Hi Sergey,

My recent experience with a Buyer with no credit history is that it is very difficult to get a loan. The lenders have found that there is a significantly higher default rate when someone has no credit history.

It has been recommended to me that someone like you get a couple of credit cards. You can even buy groceries with it, but don't totally pay it off each month. Keep your balance at 30% or less of your credit line and pay on that every month, which will give you the highest credit score. Don't totally pay the credit cards off each month because you then do not build a credit history. I think you need at least six months of credit history to get a credit score. You can talk with my favorite lender to get the most accurate information.

As others have mentioned paying your rent on time goes into the mix. You have plenty of funds for FHA which is 3.5% down, and there are some 10% down programs now. For an FHA loan, the entire down payment can be a gift from a family member.

Go ahead and contact me at http://www.karenmcknight.com. I can recommend a very experienced knowledgeable broker / banker who can search the mortgage loan market for you. If her own bank institiution does not have a loan program, she can broker to another lender. She is also a Mortgage Planner, who is a lender who has the certification to look at your entire financial picture and make recommendations based on your total financial picture. She doesn't just quote rates and sell you a mortgage.

Also, I have sold the Eastside for over 20 amazing years and would love to get together with you for a Buyer Consultation so I can help you reach your goals and solve the problems you want to solve.

Warm Regards,
Karen
Web Reference:  http://www.karenmcknight.com
0 votes
Rich Homer, Agent, NAPLES, FL
Thu Dec 15, 2011
You should engage a good local Mortgage Broker, try here. http://www.trulia.com/voices/directory/Bothell-mortgage_brok…
0 votes
Jean Bradford, Agent, Silverdale, WA
Thu Dec 15, 2011
Hi, Sergey,

Based on your question, you do have enough money for a down
payment (3.5%) on an FHA Loan, and the USDA Loan, if it's available
in your area. A meeting with a loan officer will clarify your situation,
without a cost. Even your paid rent receipts contribute to a credit history!!
Don't be afraid to check it out.

Good luck,
Jean Bradford, CRS, SFR, CRB
John L. Scott
Silverdale, WA
0 votes
Holly Olden, Agent, Bothell, WA
Thu Dec 15, 2011
I have a great lender that I work with directly. Contact Michelle Swanson with Prospect Mortgage at (425) 344-8100 or (425) 776-1450 or michelle.swanson@prospectmtg.com and see if she can help you get qualified for a loan. Once we get you pre-approved, I'll be happy to assist you in finding the perfect home! Please let me know if you have further questions. Thanks!

Holly Olden
Real Estate Broker
(425) 344-9721
0 votes
Shawn Ryan R…, Agent, Belleville, NJ
Thu Dec 15, 2011
In these types of cases, a mortgage rep will usually work with you to establish alternative credit. This could include showing proof that you paid your rent on time when you were a renter, showing that you paid your utility bills on time (gas, electric, cable), etc.
0 votes
Carrie Foley, Agent, Lynnwood, WA
Thu Dec 15, 2011
Although it's become a little more difficult to obtain financing with little or no credit history, there are options including using an international credit report that may fit your specific situation. With a large down payment (10%-20% is good) and good income, we can certainly find a loan program for you so you can take advantage of today's low interest rates and affordable home prices. Please give me a call at 425-273-6967 to discuss your sitation further and I can put you in touch with a trusted mortgage broker to explore your options further.

Thank you
Carrie Foley
Prudential Northwest Realty
425-273-6967
http://www.carriefoley.com
0 votes
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