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Valued Contributor
creditnocash
Posts: 2,201
Registered: ‎07-23-2012
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anyone get a mortgage with less then a year of credit history?

note* im not looking into getting a mortgage myself. 

 

I had a customer today that put in a mortgage app with another colleague of mine. 

hes had a cap one for a couple of months. (unsecured) 

 

now my employer pulled his credit- or attempted too.   since it takes 6 months to generate a score. he had about 15k saved for the house downpayment. 

 

what I told him was to open a couple secured cards. 

boa or cap one if he preferred with 5k each(returned after they graduated). so lenders would see he can handle high limit cards. and in a year that he would most likely qualify for the mortgage. 

 

it was so sad to see him walk away disappointed but there's nothing I could really do atm. noone is going to give you 300k with the chance you'll pay it back. 

 

so anyone? 

my guess would be if people are getting 720's in about 8 months why not a mortgage... 

thoughts, ideas? 

 

 

p.s. a kid i went to school with his twin brother got a mortgage in august of this year. he is 2 months younger then me. so its possible. 

i think id qualify for one with my current scores. but then again im young so i dont want that responsibility. 

Current: Discover Fico 689 8/14 Walmart Fico 697 8/14

Inquiries (24 Months): EQ 6 TU 3 EX 4 | Most Recent: 09/04/2013
2 Inquiries in The Last 12 Months


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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: anyone get a mortgage with less then a year of credit history?

Most lenders look for at least 12 months of history.

I think the mortgage should wait until people are older... like you mentioned; its a huge responsibility and something you cant walk away from like when an apartment lease is up...

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
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Valued Contributor
creditnocash
Posts: 2,201
Registered: ‎07-23-2012
0

Re: anyone get a mortgage with less then a year of credit history?


webhopper wrote:
Most lenders look for at least 12 months of history.

I think the mortgage should wait until people are older... like you mentioned; its a huge responsibility and something you cant walk away from like when an apartment lease is up...

the person that im talking about is older. hes in his 40's but hes never had credit until recently. i talked directly with the loan officer/uw. 

as for my friend's brother yeah i agree hence why im not getting a mortgage right now. want to wait at least 6+ years. 

 

my point was just that with people new to credit generating 700 scores shouldnt be that hard to get a mortgage... 

Current: Discover Fico 689 8/14 Walmart Fico 697 8/14

Inquiries (24 Months): EQ 6 TU 3 EX 4 | Most Recent: 09/04/2013
2 Inquiries in The Last 12 Months


2014 Goals:
Lower Utility

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$2900
Citi Diamond Preferred$6000
Citizens Mastercard$7000
Moderator Emeritus
webhopper
Posts: 7,230
Registered: ‎09-16-2011
0

Re: anyone get a mortgage with less then a year of credit history?


creditnocash wrote:

webhopper wrote:
Most lenders look for at least 12 months of history.

I think the mortgage should wait until people are older... like you mentioned; its a huge responsibility and something you cant walk away from like when an apartment lease is up...

the person that im talking about is older. hes in his 40's but hes never had credit until recently. i talked directly with the loan officer/uw. 

as for my friend's brother yeah i agree hence why im not getting a mortgage right now. want to wait at least 6+ years. 

 

my point was just that with people new to credit generating 700 scores shouldnt be that hard to get a mortgage... 


 

There are lenders out there who can use non traditional forms of credit such as utility bills, rent payments, cell phone bills... etc to supplement a credit history that spans less than 12 months. The key is to interview lenders ahead of time to see who can underwrite a non traditional form of loan. It can be done! People who have been responsibly paying their bills with cash and a checking account shouldn't be shut out of the home loan market... and they aren't!

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
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