Reply
Visitor
lasnoufle
Posts: 2
Registered: ‎03-17-2013
0

New in the USA, no credit score

Hello everybody

 

I came over to the US to work since last October. Because of this, I don't even have a credit score so far. Is it true that I have no option to get a mortgage whatsoever?

 

Properties I'm interested in in my area are around 150k; I'm making 85k a year and my wife 35k so that's a total of 120k gross (and with bonuses on top). We usually set 2k to 3k aside in savings every month, on top of 1200 in rent - so we could cover a mortgage with no problem whatsoever - the rent only is already equivalent to the mortgage repayment PLUS the property taxes!

 

I've checked with my bank but they won't lend me because I have no credit score. They just don't care about my salary, its ratio compared to the property price or the fact that my current rent alone would cover everything. Checking on the web seems to tell me I can only rely on FHA mortgages - but they also expect at least 2 years of proven records of paying usual bills (rent, electricity etc) which I don't have either since I've only been here 6 months.

 

Have I really no possibility to get a mortgage?

 

Thanks and regards

G

Community Leader
Valued Contributor
starry1
Posts: 2,079
Registered: ‎11-29-2012
0

Re: New in the USA, no credit score

[ Edited ]

Get two or three credit cards and you will generate a score in six months. I recommend one to be the capital one for newcomers, which is just for immigrants.

. Do you have a social security number yet?

Starting Score: 11/29/12 TU 527; EQ 565; EX 564 fako - bk7 dc'd 2/15/13
Current Score: 7/28/14 TU 611; EQ 635; EX 632
Goal Score:  625 for now– New goal 675

Cap1 sec $700 (SD) / FP $300 (closed) / Fingerhut $1300 / nRewards $2.5k / cashRewards $1.5k / NavChek $2.5k
Amazon $1.7k / Walmart $1k / Von Maur $200 /Firestone $1.2k (last app 10/08/13)
Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
0

Re: New in the USA, no credit score


lasnoufle wrote:

Hello everybody

 

I came over to the US to work since last October. Because of this, I don't even have a credit score so far. Is it true that I have no option to get a mortgage whatsoever?

 

Properties I'm interested in in my area are around 150k; I'm making 85k a year and my wife 35k so that's a total of 120k gross (and with bonuses on top). We usually set 2k to 3k aside in savings every month, on top of 1200 in rent - so we could cover a mortgage with no problem whatsoever - the rent only is already equivalent to the mortgage repayment PLUS the property taxes!

 

I've checked with my bank but they won't lend me because I have no credit score. They just don't care about my salary, its ratio compared to the property price or the fact that my current rent alone would cover everything. Checking on the web seems to tell me I can only rely on FHA mortgages - but they also expect at least 2 years of proven records of paying usual bills (rent, electricity etc) which I don't have either since I've only been here 6 months.

 

Have I really no possibility to get a mortgage?

 

Thanks and regards

G


You can try NACA if they are available in your area. Credit scores are not needed.

 

Just keep in mind they arent the fastest program out there, but I can say they will actually be the cheapest mortgage rate you will obtain with the possibility of buying down your rate to almost 0%.

The program is based on your savings, and if you are already saving on a consistent month to month basis, the program may not take as long for you.

Good Luck
May all your dreams and wishes become a reality!
Frequent Contributor
JMills
Posts: 259
Registered: ‎03-08-2013
0

Re: New in the USA, no credit score

Capital One has a new credit card for people that are newcomers to the country. Here you go

 

Capital One Cash Rewards for Newcomers Credit Card

 

http://www.capitalone.com/credit-cards/cash-rewards-for-newcomers/
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: New in the USA, no credit score

Do you and your spouse have a social security number?

 

Have you tried to get a secured card from your bank? 

 

 

Visitor
lasnoufle
Posts: 2
Registered: ‎03-17-2013
0

Re: New in the USA, no credit score

Hi,

 

Thanks for the answers.

 

I guess I'm stuck then.

I don't intend to take any credit card as I don't need any for everyday life, and taking some just to be able to buy a house with a bad rate in 6 months or one year, and have to wait several years more to get a good rate doesn't make sense to me. The houses I've checked and am interested in are on the market now, and I might not find something equivalent or that I like in 6 months.

 

I guess I'll just keep renting then... Or check if I can get a mortgage in my home country (probably unlikely). I just find it strange that banks would skip their turn on such easy money.

 

Regards

G

Established Contributor
Leadberry
Posts: 612
Registered: ‎01-31-2013
0

Re: New in the USA, no credit score


lasnoufle wrote:

Hi,

 

Thanks for the answers.

 

I guess I'm stuck then.

I don't intend to take any credit card as I don't need any for everyday life, and taking some just to be able to buy a house with a bad rate in 6 months or one year, and have to wait several years more to get a good rate doesn't make sense to me. The houses I've checked and am interested in are on the market now, and I might not find something equivalent or that I like in 6 months.

 

I guess I'll just keep renting then... Or check if I can get a mortgage in my home country (probably unlikely). I just find it strange that banks would skip their turn on such easy money.

 

Regards

G


Income is not necessarily indicative of one's propensity to repay one's financial obligations.  There are posters here who make six figures and at the same time are recovering from bankruptcy.

 

Also, if you're content with continuing to rent, why don't you apply for a couple credit cards and build some credit?  If you're willing to go so far as to rent indefinitely, renting for a year or two while building credit should be a cakewalk.

   
   
Regular Contributor
mirachi
Posts: 143
Registered: ‎01-05-2013
0

Re: New in the USA, no credit score


lasnoufle wrote:

Hi,

 

Thanks for the answers.

 

I guess I'm stuck then.

I don't intend to take any credit card as I don't need any for everyday life, and taking some just to be able to buy a house with a bad rate in 6 months or one year, and have to wait several years more to get a good rate doesn't make sense to me. The houses I've checked and am interested in are on the market now, and I might not find something equivalent or that I like in 6 months.

 

I guess I'll just keep renting then... Or check if I can get a mortgage in my home country (probably unlikely). I just find it strange that banks would skip their turn on such easy money.

 

Regards

G


 

Even if you don't intend on using credit cards, I'd still suggest you at least get one card, use it once (so that it starts to report), pay it off, and then put it away somewhere. That way, you'll have a credit history if a house you like does come into the market in the future~


Last app 5/7/2014

No apps until 3/31/2016!

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+