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No credit score and no nontraditional credit for coapplicant

New Member

No credit score and no nontraditional credit for coapplicant

My wife and I are trying to buy our first home. We both are recent grads and have good paying jobs in our respective fields. The issue is I have credit from student loans, 3 credit cards, and a recent auto loan, while she has no credit history at all. No credit score, no nontraditional credit (utilities, phone bill, etc...) since she lived with her parents until we got maried. Are there any lenders who will still make loans in this situation? We've tried RMC (Ryland homes in house mortgage company) and Wells Fargo and neither can work with us. Any ideas? Or do we just have to wait for her to be able to pull a score? We have opened a CC account her name as well as added her as an authorized user to one of my CCs.

 

Thanks! 

Message 1 of 11
10 REPLIES
Valued Contributor

Re: No credit score and no nontraditional credit for coapplicant

If she is on the loan application she must also qualify for all requirements.

 

Since you have a score (assuming a qualifying score) and secured a good job since college, is it possible to apply for the loan alone?

 

You can apply alone and qualify off of your score and income and if approved you can put her on the Deed to the home. Being on the Deed gives her homeownership with you, just not responsible for the loan unless a community property state.

Good Luck
May all your dreams and wishes become a reality!
Message 2 of 11
New Member

Re: No credit score and no nontraditional credit for coapplicant

I cannot secure the loan alone because the house we are looking at would be above my allowable DTI (41%) is what I have heard... We have opened a CC in her name though. How long will it take to generate a score?

Message 3 of 11
Valued Contributor

Re: No credit score and no nontraditional credit for coapplicant

6 Months of reporting before it generates a score.

Good Luck
May all your dreams and wishes become a reality!
Message 4 of 11
New Member

Re: No credit score and no nontraditional credit for coapplicant

One more question. Since I added her as an AU on my CC will that generate a score once it repots? It is about 2and a half years old.

Message 5 of 11
Valued Contributor

Re: No credit score and no nontraditional credit for coapplicant

When first establishing credit, it generally takes 6 months before a FICO score is available.

 

You could possibly see other types of scores available sooner, but majority of Lenders only use FICO scores.

Good Luck
May all your dreams and wishes become a reality!
Message 6 of 11
Highlighted
Valued Member

Re: No credit score and no nontraditional credit for coapplicant

Its probably still a long shot but you might try a small local bank or credit union they might be able to work something out for you. Im also young with a thin file and no non traditional credit sources but I do have a credit score. Local credit union was much more willing to work with me and try to find a loan solution for me.
FICO: 782(Ex, AMEX 8/12), Mortgage Pull(3.0%, 5/1 ARM from Local CU 2/2013): 725(EX), 757(TU), 772(EQ); 775(EX, Amex 8/14)
Cards: Amex BCE(10300), Discover(7000), Target (1000), PenFed Platinum Rewards Visa (8500), Chase Freedom(5000), Barclay Arrival+ (10000), Amex HHonors Surpass(11,800)
App'd: Barclay & Hhonors Surpass Aug 2014, PenFed & Freedom Feb 2013, Amex & Target Jul 2012, Discover Feb 2008 Gardening til ???
Goals: TBD, possibly a mortgage refi to a fixed rate or better adjustable
Message 7 of 11
New Member

Re: No credit score and no nontraditional credit for coapplicant

Thanks for the replies. I may have found a lender that can help us in our situation. I'll keep you all posted!

Message 8 of 11
Valued Contributor

Re: No credit score and no nontraditional credit for coapplicant

Even though you added her as an AU, it still takes 6 months to generate a score. I added my husband as an AU to two of my cards, one of those was done over a month ago and has reported to my credit report after he was added and he still doesn't have a score. If you post your info, we can tell you if we think applying alone is a no-go.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 9 of 11
Valued Contributor

Re: No credit score and no nontraditional credit for coapplicant

I should add that I am applying alone for our family's mortgage.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 10 of 11