i want to buy a house i have a down payment but dont have bad credit but have NO CREDIT AND IM SELF EMPLOYED what can i do

Asked by rxydod56, Miramar, FL Sat Jan 5, 2013

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, ,
Sat Jan 5, 2013
Also, it only takes 6 months of established credit to generate a credit score - so if you have time to wait then you could obtain a few secured credit cards (limits don't have to be high, $250-500 each) and in 6 months you'd have more options.

Shane Milne | Lending in all 50 states | NMLS #81195
1 vote
, ,
Sat Jan 5, 2013
Do you have any non-traditional credit?

Most people think that credit scores are required for mortgage financing, and for a lot of situations that is true. However with FHA, VA, USDA and even Fannie Mae financing (that means conforming loan programs) you can purchase without any credit scores as long as you have sufficient non-traditional credit references as well as your credit report is free of delinquent marks (late payments, collections, BK, foreclosure, etc).

What are non-traditional credit references?

They are items that do not normally appear on a credit report, such as, but not limited to:

- Rental history
- Utility Companies (gas, electric, water, landline home phone, or cable TV)
- Insurance (non pay-roll deducted medical, life, auto, renters)
- Child care payments made to a business
- School tuition
- Retail stores (department, furniture, appliance, specialty, rent-to-own, internet/cell phones)
- 12-month savings pattern evidenced by regular non-payroll deposits
- Personal loans with evidence of payment terms and 12 months canceled checks

What "sufficient" in that sentence above means is that you'd have at least 3 of them, each would have at least 12 months of payment history, and all payments made on time. Fannie Mae is slightly different, they require 4 to 6 credit references, and one of the non-traditional credit references needs to be housing related (rent, utilities, etc).

How do you verify non-traditional credit references?

For most, such as utilities & insurance (and others, depending on what they are), you can request a "Letter of Credit". These are documents often in letter/summary format which will include the creditor’s name (often it's on their letterhead), date account was opened, current status of account (open, closed, in default, etc), payment history (in a "number of payments past due" format), current balance (if any), and required payment amount. Statements such as "satisfactory", "good", and "pays as agreed" in relation to payment history are not typically acceptable.

Supporting documentation may be required if the underwriter feels it's needed (which tends not to be very frequent), such as consecutive cancelled checks showing payment, 12 months of bills marked "paid" to show payments were timely, and bank statements can also be used to show payment. Again, not a very common requirement unless it's apparent (such as a personal loan).

One exception to the "if the underwriter feels it's needed" part is when it comes to rental history from a private landlord (as opposed to a property management or leasing company). In that situation, either copies of cancelled rent checks or 12 months of bank statements showing withdraws on the same approximate date for the exact amount as rent would be required. In addition when rent is verified the lender has the landlord complete a Verification of Rent form which asks to confirm when you began renting, the amount of rent, payment history, and gives the landlord a spot to write in any optional comments.

Shane Milne | Lending in all 50 states | NMLS #81195
1 vote
el-chachom, Home Buyer, Miami, FL
Wed Feb 6, 2013
i want to buy a house i have good down payment 20 % call me 718 207 7521
0 votes
Roger Lovela…, Agent, FL,
Wed Jan 9, 2013
Call me about owner financing with 10% down and any credit considered.

Roger Lovelady, Realtor
Daniel Crapps Agency, Inc, Florida
cell 386-365-7039
0 votes
Roger Lovela…, Agent, FL,
Wed Jan 9, 2013
Call or email me about owner financing with a down payment and any credit considered.

Roger Lovelady, Realtor
Daniel Crapps Agency, Inc, Florida
0 votes
Emma Carmona, Agent, Pembroke Pines, FL
Mon Jan 7, 2013
Please feel free to visit my website: http://www.EmmaCarmona@keyes.com for all your resources.

To answer your question contact our loan coordinator directly;
GB Shelter Mortgage /Eduardo Garcia
NMLS #: 364627
Senior Loan Coordinator
Direct: (305) 822-9800
Mobile: (786) 328-7053
Fax: (866) 296-6340
Email: eduardo.garcia@gbmail.com
Apply Online: http://www.edreyesgarcia.com
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0 votes
Speedy Inter…, Agent, Ft Lauderdale, FL
Sat Jan 5, 2013
There are special programs for people like you, first time home buyers with limited credit history. There is alternative credit sources that will build your credentials. My suggestion is to find a reputable mortgage broker who can help you out, or go to a local credit union or bank that may have programs to help you.

In regards to the self employment, I can tell you that often times it becomes an issue because self employed individuals have a low AGI, thus making it more difficult to qualify. The problem with reporting low income is that it can close doors to qualifying for loans. Talk to your CPA about ways you can plan ahead to make sure you have the income to qualify. A little planning may do you good.

For further more personalized information you may reach my office. We can put you in contact with local lenders that may shed some light into the path to homeownership.
Laurina Emiliani
Speedy International Realty
Pembroke Pines, Florida
305-513-4890 Office
305-771-4890 Cell
0 votes
Lisa Reeves, Agent, Tampa, FL
Sat Jan 5, 2013
Unfortunately I have found only a few lenders that will do alternative credit. You may want to take the time and establish credit to give you the best options and rates. Contact a mortgage broker directly to help you with this. I would suggest Kevin Reeves 813-728-4992.
0 votes
Andrew Muller, Agent, Weston, FL
Sat Jan 5, 2013
cannot give you a straight answer from the few words you dsribed your situation.
A mortgage broker would be able to analize your situation very quickly after ssit down with you after a few minutes.Or even a few minutes on the phone.
Give me a call and I can give you an idea if you can qualify or not and if not what steps you need to take.
Andrew Muller
Best Beach Lending, Weichert Realtors, Best Beach RE.
Loan Originator NMLS#384950
Realtor Lic#0604762
E-mail; amuller@bestbeach.net
0 votes
Ana Benitez, Agent, Pembroke Pines, FL
Sat Jan 5, 2013
You can obtain an FHA loan where you can use alternative credit to build credit. Such as your rent payments, utilities, insurance, cell phone, etc. You would need to provide full documentation of tax returns, bank statements, etc. in order to apply for the loan. If you like i can refer you to a very knowledgeable loan officer that specializes in fha loans.
0 votes
Meir Aloni, Agent, Plantation, FL
Sat Jan 5, 2013
You may want to call Lisa at 561-400-9478; she owns her own mortgage co.; if it can beeb done, she will help you to obtain the best loan for you.
Call me once you talk to her.

With enthusiasm

Meir Aloni & Team

CRS (Certified Residential Specialist)

CDPE (Certified Distressed Property Expert)

RECS (Real Estate Cyberspace Society)

Successfully selling Broward County since 1986!

Direct phone# 954-338-5220 http://www.WeSellBroward.com

All Star Realty Inc.
0 votes
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