First Time Buyer/Thin File

[Barry_G]

Credit:  Fico Purchased here 773. No lates/No negatives

Income: 85K-90K. Source, hourly including forced overtime.

Debt: Zero. No car payment,  2 CCards with $40 balance.

Employment: W2'd 20 years at same job.

Assets:  checking,savings $27K. 401K $40k. Company Stock $5K.

Location: Greenwood, SC

Single Family, Primary Residence,

I'm looking to purchase or build a home. Looking for something in the 180K-230K price range. I'm a first time buyer. I only have 2 tradlines reporting. 2 Cap One CCards with low limits. ($500,$300).  Any way I can qualify?

I thought I was in decent shape but it seems I need at least 3-4 active tradlines reporting for more than a year. I can supply alternate lines. Rent for past 12 months ($660), utlities etc. I don't want to go FHA because of the expensive and lifetime PMI. AAoA for CCards are 4 years 3 months. Oldest 5 years 10 month. Other 2 years 8 months.

I could open a new line of credit. CCard or auto purchase(need a new car anyway) but don't want to wait a year for it to season. Would like to purchase a house before the rates go up more. What are my options? Suggestions?

[DallasLoanGuy]

Try wells fargo.... they can do manual underwrites

we downgrade to manual for thin files.

[PetuniaJane]

I would think with your income/savings you would be able to find a bank to work with you. I'd start with your primary bank you have your savings with. I'm not sure about the market in Greenwood, but DH and I just got a great deal on a duplex in Spartanburg. So there's definitely some good buys in the Upstate right now. Best of luck with your plans!

[DallasLoanGuy]

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@PetuniaJane wrote:
 I'd start with your primary bank you have your savings with.

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good advice....

[Barry_G]

Yea, I'm going to my local branch in the a.m. to talk to a mortgage loan officer. Hopefully, they can work something out. I'm wanting to get something around the first of the year. I could have another 7.5K-10K in savings by then. I have really cut my bills to the bare minimum, just rent + utilities, around 1K per month. I work at UPS so I can get as much overtime as I want during November, December.

May try a local credit union or Churchill Mortgage. Recomended by Dave Ramsey. They have a section on their website for no credit score loans. Difficult but not impossible to get.

My fico score came back as 773. So with only two tradelines, both Cap One credit cards, is my score going to come back as zero or insufficient? I can provide alternate lines, rent/utilities for the last 3 years at my current address. What additional documentation will they require for underwrining?

I plan on putting 20% down, even if i have to get a cheaper house. I just can't pay the pmi. I put in numbers for an fha and the pmi was $195/month for 11 years. Thats an extra 25K in payments for nothing.

[DallasLoanGuy]

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@Barry_G wrote:

Yea, I'm going to my local branch in the a.m. to talk to a mortgage loan officer. Hopefully, they can work something out. I'm wanting to get something around the first of the year. I could have another 7.5K-10K in savings by then. I have really cut my bills to the bare minimum, just rent + utilities, around 1K per month. I work at UPS so I can get as much overtime as I want during November, December.

May try a local credit union or Churchill Mortgage. Recomended by Dave Ramsey. They have a section on their website for no credit score loans. Difficult but not impossible to get.

My fico score came back as 773. So with only two tradelines, both Cap One credit cards, is my score going to come back as zero or insufficient? they will be very close to myfico scores you got  I can provide alternate lines, rent/utilities for the last 3 years at my current address. What additional documentation will they require for underwrining?

I plan on putting 20% down, even if i have to get a cheaper house. I just can't pay the pmi. I put in numbers for an fha and the pmi was $195/month for 11 years. Thats an extra 25K in payments for nothing.

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[Barry_G]

Seems as if I will have to wait a little longer to buy a house. Talked to loan officer at my bank and he seemed to think I could be approved. Fast forward to last week. A drunk guy hits my car in parking lot, lots of damage. I decide to but a new car, not worth fixing the old one. Apply to my bank for car loan and was denied. Score they pulled was 758. But with limited credit they would not approve. 2011 Maxima 22.5K with 5K downpayment.

So if they won't approve that there's no way there going to loan me 180K on a house. I did end up getting approved at the dealership, at a better rate than the bank anyway, 1.74% for 60 months. At least now I have another trade line. Since I took a hit with the hard inquiries i decided to app for some prime cards to improve the limits/number of tradelines I have. I got approved for American Express BCE with a 2K limit. Hopefully I can get 3X CLI in 60 days. Also approved for Chase Sapphire with a 7K limit. Also got a $500 CLI on both Cap 1 cards, $1k, $800 now.

So I now have 4 revolving accounts with 10.8K limit, balance of less than 200. 1 installment account for 17.9K. Hopefully this will help with getting approved in the future. I guess I will garden for a while and let these accounts report and season. My AAOA will drop but shouldn't tank my score for too long.Will I have to actually wait a year for these lines to be considered? Hope rates don't rise too much in the future. As a side benefit if i have to wait a year at least I can have another 20-25K down.