I am an Realtor in that area and work with a lender who specializes in these different credit situations. While some lenders are able to use alternative trades, like utility bills, you will need to establish some credit to get a mortgage.
If you follow the below steps, you will build positive credit, and should be ready for a home loan inside of 6 months.
1) Go to your bank or credit union and get 2 secured credit cards. You will basically deposit an amount, and they will give you a credit limit for that amount. Obviously, the higher your credit limit is, the more favorably it is looked upon. Keep your balance on these cards at 30% of the credit limit, and make payments on time every month
2) BMO Harris has a great product called the Credit Builder CD. You are essentially purchasing a CD (Certificate of Deposit) for $1,000 on credit. You pay $45 per month for 2 years, and you have the CD you can cash in at the end. They report to the credit bureaus.
The key is to get 3 credit lines, paid on time.
If you have any further questions, or would like more specific advise or your circumstances, give me a call at 317-721-2274.
Thank you for the question!
Avery Garrett, Realtor
Coldwell Banker Kaiser
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