Number of Open & Active trade lines needed for Mortgages ?

[veracious]

Would someone please state the number of  trade lines needed to prove mortgage loan worthiness.

I guess you can't believe everything you read but,  some lenders require  4   'open & active trade lines'

before you will be approved for a mortgage, or so I have read.

Please, someone tell me what is the correct information. If I need open & active tradelines then I'll have to postpone

my home search while I open more accounts to total four.    Is this the industry standard?  I have only two open now.

My credit file includes mostly closed and paid off credit lines.  What do I need to do now?

Thanks

Thanks

[Anonymous]

typically 3 are required.  Some lenders will accept non traditional trade lines such as utility bills in your name with 12 months clean payment history.  Some will not.  SOme will also require 4 and some lenders may let an otherwise strong file slide by with 2.  Especially if there is a long list of positive and paid off accounts.

  There is no one answer, hence why you see different information.

[Anonymous]

Not to threadjack, but I have friends who are planning to apply for a mortgage soon....they have positive closed installment loans on their reports and I think only one open revolving line (which I advised they open).  Are they likely to have a big problem applying, given a decent-sized DP plus reserves?

[veracious]

Thanks,     mickie08.       By the time I find a home  one open installment (car loan) will be closed.

So now I have to open a minimum of 2 accounts  to meet the  requirements or not.

  My scores can easily take the hit but I will then have  two  new open accounts,   I thought  we

weren't supposed to open new accounts  just before seeking a mortgage.   What should I do

in this current lending enviornment?

Thanks

[Anonymous]

the new accounts are basicly worthless for that until they hit 6-12 months old (prefreably 12 months) so typically any hit from "new accounts" has been recovered.  As far as what will matter, it is up to the lender.  Again, a strong enough file may get passed with only 1 tradeline, especially if you have multiple non traditional tradelines to show.

Mauve..  1 tradeline will not likely be enough unless they can show non traditional tradelines.  That said, large DP and reserves can overcome alot.  Even more so if the FICO and DTI are within guidelines.