FHA clients with no “credit score” or reportable credit on a credit report can still get mortgage financing. Here are some ways that we help those clients establish a credit history!
If Your Are Renting:
- Rental housing payments (subject to independent verification if the Borrower is a renter)
- Telephone/mobile phone service
- Utility company reference (if not included in the rental housing payment), including gas, electricity, water
- Television/Cable service
- Internet service
Note: Some utilities are now reported on your credit report!
If You Are Not Renting:
- Insurance premiums, not payroll deducted (medical, auto, life, renter’s insurance).
- Childcare payments made out to businesses.
- School tuition
- Retail store credit card payments, such as department, furniture, appliance stores, or specialty stores.
- Rent-to-Own (for example, furniture, appliances).
- Payment of that part of medical bills not covered by insurance.
- Documented 12-month history of savings evidenced by regular deposits resulting in an increased balance to the account that:
- Were made at least quarterly,
- Were not payroll deducted, AND
- Caused no insufficient funds (NSF) checks.
- An automobile lease
- A personal loan from an individual with repayment terms in writing and supported by canceled checks to document the payments
- A Documented 12-month history of payment by the Borrower on an account for which the Borrower is an authorized user.
Other Methods:
We can work with you to offer suggestions for creating a credit profile. This may include opening a credit card, charging a small amount, and paying it entirely off each month. These methods may take a little time but may be well worth the effort!
The key is to verify an established payment pattern by those providing these forms of credit! After all, these are all forms of credit. They are just not always reported to the credit bureaus!
