Developing a Credit History or Enough Credit
The lack of a credit history, or the borrower's decision to not use credit, may not be used as the basis for rejecting the loan application.
Some prospective borrowers may not have an established credit history. For these borrowers, including those who do not use traditional credit, the lender must obtain a non-traditional credit report from a credit reporting company or develop a credit history from one of the following examples
- 12 months canceled rent checks, Money orders, or direct deposit Receipts from the bank
- Other means of direct access from the credit provider.
- gas
- electricity
- water
- land-line home telephone service, and
- cable TV.
- Insurance coverage (for example, 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 - (for example, 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.
The More ammunition we have to prove you pay your bills the better. letters from a direct service providers must be on letter head and include the following:
- creditor's name
- date of opening
- high credit
- current status of the account
- required payment
- unpaid balance, and
- a payment history in the delinquency categories (for example, 0x30, 0x60, and so on).
Florida FHA Mortgage Loan
Providing mortgage solutions for those looking for an FHA loan in Florida!
Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:
Minimal Down Payment and Closing costs.
- Down payment less than 3% of Sales Price Gifts are allowed
- Seller can credit up to 6% of sales price towards closing and prepaid costs.
- 100% Financing available
- No reserves required.
- FHA regulated closing costs.
Easier Credit Qualifying Guidelines such as:
-
- No minimum FICO score or credit score requirements.
- FHA will allow a home purchase 1 year after a Bankruptcy.
- FHA will allow a home purchase2 years after a Foreclosure.
To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or use our quick application to find out more about the many FL mortgage programs we can make available. Or Apply now for a FL FHA home loan.
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