Single mom with hardly any credit

Asked by Ericahanafin, Sparta, MO Sun Oct 27, 2013

I am single mom and i hardly have any credit. Will any lenders lend for a first time home buyer?

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8
Brian Nguyen, Mortgage Broker Or Lender, Mission Viejo, CA
Thu Feb 13, 2014
There are lenders like myself that are able to give out loans to individuals who do not have much credit history. In the event a borrower does not have sufficient credit on their credit report we will allow substitute forms. Some of these substitute forms are known as non-traditional credit which is judged by rental housing payments, utility company references (gas, electricity, water, cable, etc.), school tuition, automobile leases, insurance premiums, retail store credit cards, and a documented 12 month history of savings from a bank. These are all ways in which a lender will review your credit without actually having credit, but not all lenders will accept this.It is also important to keep in mind that lenders look at other factors as well including income, expenses, assets, liabilities, debt, employment, as well as down payment and credit score. So all of these have to be strong as well for you to be able to get a loan. There is still a chance you can get a loan if you are willing to put half down. I recommend you speak to a lender like myself that can help you out with this type of loan that fits your situation. Well if you have any other questions or need a loan, please contact me through the information on my profile page. I hope this helps! Good Luck! Brian Nguyen Sr. Mortgage Banker NMLS # 659743 Phone: 949.667.2887 brian.nguyen@nafinc.com
0 votes
Anthony Piem…, Agent, Boston, MA
Wed Nov 13, 2013
I have a couple of lenders that could help you out. There are ways of building credit. The best answer would be from a lender who after reviewing your information would let you know exactly what you need to do to get into a home. Besides there are many different programs for first time home buyers.
0 votes
Heath Coker, Agent, Falmouth, MA
Wed Nov 13, 2013
I would contact a local lending professional to help with this answer.
There is not enough detail in your question.

I know this guy can be helpful: rtranchell@totalmortgage.com
Bob Tranchell Total Mortgage Services LLC (508) 367-5731 cell


(Please note: when you choose an answer as a Best Answer, or at least give a thumbs up, it helps those who answer questions here.)
0 votes
Wallace More…, Agent, Pearland, TX
Mon Oct 28, 2013
Hardly any credit is NOT bad credit.

You just have to speak to the right people.

The lender, PrimeLending, that has replied to this post is a good example.

They understand the options and can offer alternative solutions.

Most people don't fully understand credit and you may have been misinformed by other well meaning individuals.

Just because you don't qualify under one lender's credit requirements does not mean you won't qualify with another.
0 votes
Christine Mo…, Agent, Wilbraham, MA
Sun Oct 27, 2013
Most lenders will tell you what you need to do to put your credit in a better position to buy.
0 votes
Tony Garcia, Agent, Wilmington, NC
Sun Oct 27, 2013
Short answer is yes. As long as you don't have a lot of negative credit you should be ok. FHA does not require you to have a credit score, the issue is finding a lender that will do a manual underwrite with no credit. My companies requirements are:

- we need you to have at least one credit score
- we will need 3 non traditional lines of credit, that have at least a 12 month history with no late payments in the last 12 months

Then non traditional trade lines are:

- rent
-utilities
-insurance
-child care
-school tuitions
-retail stores
-rent to own
-installment agreements for medical expenses not covered by insurance
-internet/cell phone bill
-savings can be considered a non traditional line of credit; if you have a history of making non payroll withheld deposits into a savings/checking accounts (at least every 3 months) with no overdrafts, that result in a steady increase to balance.
-personal unsecured loans, (as long as you can document cancelled checks)

There are options for financing, please feel free to call at 571-246-4373 or email at tony.garcia@primelending.com to discuss your situation in more detail.

thanks
0 votes
Ericahanafin, Home Buyer, Sparta, MO
Sun Oct 27, 2013
Even with hardly any credit they still consider it "bad" credit.
0 votes
Wallace More…, Agent, Pearland, TX
Sun Oct 27, 2013
It depends! Keep in mind that hardly any credit can be better than having bad credit.

Most lenders use your conventional credit scores for qualification. However; there are lenders that are willing to use unconventional credit to qualify you.

Unconventional credit refers to certain bill payment history like utilities or phone bill. You usually need to have a strong work history to balance out your lack of credit.

There are options out there, but you may need to speak with many different lenders before you find one that will work with you.

When you speak to a lender, if they can't help you, ask them for a referral to someone that can. Lenders refer customers to each other all the time and they may know someone that can help you.

Good luck

Wallace Moreira
Allison James Estates & Homes
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