If you are trying to become a HOMEOWNER before the June 30th Tax Credit deadline, 
did you know that you can use your Utilities bills and rent to help you buy your next home. Banks and Brokers everywhere are tightening their criteria to qualify and if you don't have at least 3 accounts with a 12 month history on your credit report, you need to do some fast thinking or you could lose the home of your dreams. Furthermore, with home prices reaching new lows and rates near their historic lows, another opportunity like this may not ever come.
How to find good "non-traditional credit"
If you pay cash for most purchases, never finance a vehicle, or grandma told you to never ever use a credit card, then you may need our help. People that don't have at least 3 items that report to the major credit bureaus are going to get their loans turned down. But don't give up hope, there is a solution, we just need to verify some non-traditional credit. When it comes to non-traditional credit, the account must be in your name, primarily because you need to obtain a "letter of credit" from them which lists your name and often the credit vendor (the company that the credit report is ordered from) needs to do an independent verification with that non-traditional creditor to be able to add it as a supplement to the original credit report (often something that lenders want). The account must be current, although closed accounts can further support the 3 current non-traditional trade lines. As far as the rent you pay, must be documented by cancelled checks or bank statements with the exact amount being withdrawn on/around the same day each month.
Some credit is better than others
There are basically two groups, group I credit is weighed much more heavily than group II credit, although group II credit is still accepted by some lenders today.
Group I - rental housing payments (subject to independent verification if the borrower is a renter), utility company reference (if not included in the rental housing payment), including gas, electricity, water, land-line home telephone service, cable TV. If the borrower is renting from a family member, request independent documents to prove regularity of payments, such as cancelled checks.
Group II - insurance coverage, i.e., medical, auto, life, renter's insurance (not payroll deducted); payment to child care providers - made to a business providing such services; school tuition; retail stores - department, furniture, appliance stores, specialty stores; rent to own - i.e., furniture, appliances; payment of that part of medical bills not covered by insurance; Internet/cell phone services; a documented 12 month history of saving by regular deposits (at least quarterly/non-payroll deducted/no NSF checks reflected), resulting in an increasing balance to the account; automobile leases, or a personal loan from an individual with repayment terms in writing and supported by cancelled checks to document the payments.
Scott Hoag
Licensed Mortgage Broker
Gulf & Southern Mortgage
5521 38th Ave N
Saint Petersburg, Florida 33710
Office Phone- 727-344-3995
Cell Phone- 727-644-3656
scott@livinginstpete.com
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