My dad wants to purchase a home in Stroudsburg, Pa he has work history, and makes good income but he DOES NOT have credit. Can he still get a loan?

Asked by MrsIslami, East Stroudsburg, PA Wed Oct 12, 2011

and my credit is good NOT excellent but GOOD, but I only work at home babysitting can I help my dad obtain a loan if he needed it??? My dad will be a 1st time home buyer...

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Mark Logan, , Floral City, FL
Sat Oct 15, 2011
Hello ,
I am Mark Logan,I have many years of mortgage financing experience and have helped many families purchase or refinance their homes. I also work with seniors on reverse mortgages.These loans are to close much faster and with less paperwork. This allows real estate investors to take quick advantage of good deals before other investors can.

SOME FEW TIPS:

If you decide that hard money loans are a good option for you, then the next step is applying for one. You must fill out a loan application much like a regular conventional loan and provide all relevant data on your financial situation as well as on the property. Include all relevant details on the deal in your loan package that will speed up the process. Hard money or private loans are more relational than regular loans, so take the time to build long-term relationships with private loan brokers and investors that will make the process smoother in the future if you have an existing relationship.
0 votes
Steve Sexauer, Agent, OFallon, IL
Thu Oct 13, 2011
Only a lender can tell your dad if he can get a loan. He should contact a local real estate agent and get recommendations from that agent as to what lenders woudl be good to contcat. If he does not have credit he may do better with a local bank or local credit union as opposed to a large bank. Banks with names like The Bank of "insert the hometown name here". Small local banks make decide in the conference room and don't have all of the same requirements that large national banks may have. he should ask his local real estate agent if they have a contact person at a local bank of credit union. Good Luck.
0 votes
Gita Bantwal, Agent, Jamison, PA
Thu Oct 13, 2011
Your dad should talk to a lender and get pre qualified. Go to http://www.hud.gov there are resources for home buyers .
Web Reference:  http://www.gitabantwal.com
0 votes
Matthew J Ru…, , Stroudsburg, PA
Thu Oct 13, 2011
I agree with Bev and Anna. There are plenty of programs out there. Here is my contact infomation my cell is 570-994-7208 and my email is mrubin@wilkins1.com. Feel free to call or email me I will be more then happy to answer any questions that you may have about Real Estate.
0 votes
, ,
Wed Oct 12, 2011
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.

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).

You can also go on the loan, and if you have great scores, you may be able to help out in that department, but unless you've been claiming your babysitting income on your tax return for the past 2 years then your income from it wouldn't be able to help... plus any debts you have in your name would potentially reduce what he could qualify for. But if he & you can qualify for your debts too, then yes you could potentially help him qualify.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Wed Oct 12, 2011
there are other factors besides credit that determine qualification; therefore your Dad needs to visit with any loan officer(s), after reviewing his overall financials, credit, debt, income, etc., a determination can be made, the type of loan, how much, how much down, etc.; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously...
0 votes
Bev Waring, Agent, Delaware Water Gap, PA
Wed Oct 12, 2011
I would suggest that he speak with a PA lender. I can give you several names and numbers if you would like. Best, Bev
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