A borrower with no credit history may be someone who chooses to pay cash for the bills. It is possible to show a credit history that will satisfy most lenders requirements.
A credit history can be established by providing at least 12-month history on the following options:
Rent, Utilities, Rental agencies, Auto references, Car insurance, or you may use a co-signer that has good, established credit.
Fanie Mae's "My Community" program was designed just for people with limited credit history and will allow up to 100% financing. Keep in mind you will need to show at least 4 alternative tradelines such as rental history, cell phone, cable tv, etc.
There are many programs available for people who have no credit history. You can even qualify for 100% financing if you have no credit history, as long as you can provide some alternative forms of credit.
Speak with one of our mortgage professionals about the availability of alternative credit reports accredited by the NCRA National Credit Reporting Association, which may help you in qualifying for a loan with some of our lenders.
Any accounts that you decide to use as alternative credit must be paid on time for the last 12 months. Cancelled rent checks or rental reciepts can also be used as a alternative trade line. You r mortgage broker should be able to help you decide what accounts to use.
If your rent includes utilities that will count as 2 alternative tradelines with certain lenders.
You may qualify for FHA financing with no credit history, as long as you can provide a rental history and 3 other monthly bills paid on time for 1 year.
