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No Credit Score Financing Available with LESS than 5% Down!

Nationwide, buyers can purchase with no or low credit scores provided a NTRMCR can be created. If so, the buyer has met the minimum credit guidelines for government financing loans.

NTRMCR = Non-Traditional Residential Mortgage Credit Report

What gets put on the report?

Proof of utility bills paid on time with no 30 day lates.
Rental History
Non-payroll deducted health insurance
Auto Insurance
Cell Phone Bill
Even a history of regularly saving $50.00 per month will make it on the report.
Basically, any type of payment history covering 12 months of on time payments, with an account number, with a high amount of credit/payment established, with no 30 day lates will qualify. The strangest one we ever used? A mechanic that regularly purchased tools from a Snap-on Tools distributor.

If you get three of these, and rental history can count as one, your buyer can purchase with a minimum down payment of 2.25% on a purchase price at or below $125,000 or 2.85% if the purchase price is $125,001.00 or greater.

This NTRMCR CANNOT be a substitute for poor credit history. But as long as the derogatory items are aged properly, many lenders will take it to cover up a poor credit score. Our own banking policy will not allow a score below 525.

Down payment assistance is allowed in conjuction with the NTRMCR as well as a maximum 6% seller contribution for closing fees and pre-paid expenses.

Maximum loan amounts are the same as the FHA maximum for your area!

Posted by Mark Organek - Tempe Gilbert Mesa Chandler REALTOR on 03/10/2008 03:16 PM

Comments (4)

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4 Comments on No Credit Score Financing Available with LESS than 5% Down!

Mark, Is this an FHA or Rural Housing loan? It sounds like something I could certainly use in my market.

03/10/2008 03:22 PM

by Bryant Tutas-Tutas Towne Realty, Inc

Bryant- FHA and I'm sorry that I am not 100% sure on the Rural Housing loan as we don't really have any clients that use them out here.

03/10/2008 03:29 PM

by Mark Organek - Tempe Gilbert Mesa Chandler REALTOR (RE/MAX Alliance)

Ok that makes sense. I just did this with an FHA tied in with the Ameridream program. The buyer had no credit score!! The mortgage broker was able to use a cell phone bill, rent receipts and get this.....a delinquent charge account where she had worked out a payment plan!!!

USDA Rural Housing(farmers home loan) used to be the loan of choice in my area about 12 years ago. All of the builders advertised buy a house for $100 down(deposit). With the difficulties in getting 100% financing right now the Rural Housing product is making a come back. It's a true 106% financing program. Meaning the closing costs can go on top of the deal. They do not have to be negotiated in. It's a very good product for folks who qualify income wise.

03/10/2008 04:35 PM

by Bryant Tutas-Tutas Towne Realty, Inc

Bryant - Oh yeah, Chapter 13 bankruptcy repayment plan counts as well. It doesn't have to be completely paid and they are golden after 12 months of timely payments. Thank you also for sparing me the research on the USDA Rural Housing loan, too.

03/10/2008 05:53 PM

by Mark Organek - Tempe Gilbert Mesa Chandler REALTOR (RE/MAX Alliance)

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