mortgage with "newness"

[Rlandon87]

I will have at the time of mortgage app...
1 CC @ 2 months old, acquired for 0% BT/Purchase offer
3 CC @ 5 months old - one for fuel rewards, one unused but got for 0% apr, the last also for 0% apr offer.
12 Inquries in last 6 months on EX, 6 while searching for a lower value uto loan due to mine being $650 a month. Ended up selling the vehicle outright and have no payment.
2 inquiries are mortgage apps to get advice on credit from loan officers.
2 for credit union memberships
2 for CLI

No inquires on TU, 4 on EQ 2 for auto loan 1 for CC app, 1 for CLI.


Also should I get any dispute comments removed from any tradelines showing that word, even if it doesn't say "IN dispute" just "consumer disputes#

[Rlandon87]

Will that amount of new accounts/inquiries affect my chances if approval?

DTI appears to be close to 40% total and 18% PITT

My FICOs range from 638-670 with midscore being a 654.

Attempting a USDA RD Gauranteed loan.

[ShanetheMortgageMan]

With all loan programs, it's pretty typical for lenders to want to see 3 trade lines that are each 12 months old.  However FHA, VA, Fannie & Freddie do not stipulate how much credit history there needs to be.  USDA is different though.

USDA guidelines are being updated on 9/1/14, and for credit history are:

At least one applicant whose income or assets are used for qualification must have at least three trade line payment references that have existed for at least 12 months to establish a credit reputation and validate the credit score.

Some applicants may not have an established credit history, but credit verified through alternative sources may indicate a willingness to pay recurring debts. Neither the lack of a credit history nor the applicant’s decision to not use traditional credit can be used as a basis for rejection. For these applicants, the lender may develop a Non- Traditional Mortgage Credit Report (NTMCR). An NTMCR may not be used to offset derogatory references found in the applicant’s credit report; it should not be utilized to enhance the credit history of a applicant with a poor payment record or to manufacture a credit report for a applicant without a verifiable credit history.

The preferred method is all nontraditional credit references be verified by a credit bureau and reported back to the lender as a nontraditional mortgage credit report in the same manner as traditional credit references. If a NTMCR is impractical, or such a service is unavailable, a lender may choose to obtain independent verification of trade references. Three trade references are required when at least one of the trade references includes verification of rental housing payments or mortgage loan payments. If unavailable, at least four trade references must be used to determine if an applicant has a sufficient credit history.

Acceptable forms of documentation for a NTMCR include:
- Cancelled checks;
- Third-party verifications; or

- Non-traditional credit report for the following non-traditional credit sources that include the creditor’s name, date the account was opened, account balance, monthly payment due, and payment history reported in 0x30, 0x60, 0x90 format. Subjective statements such as “satisfactory” or “acceptable” are not an acceptable format for repayment history confirmation. Rural Development will accept reports by providers who develop bill payment histories.

Acceptable trade-line sources include an open and recent 12-month payment record of the following:
- Rent payments;
- Utility payment records (if utilities were not included in any rent payments) such as gas, electricity, water, land-line home telephone service or cable TV;
- Insurance payments (excluding those paid through payroll deductions) such as medical, automobile, life and household, or renter’s insurance;
- Payments to child care providers – made to a business providing such a service;
- School tuition;
- Payments to local stores (department, furniture, appliance and specialty stores);
- Payments for the uninsured portions of any medical bills;
- Internet/cell phone services;
- Automobile leases;
- A personal loan from an individual (other than a family member) with repayment terms in writing and supported by cancelled checks or money order receipts to document repayment;
- A documented 12-month history of saving by regular deposits (at least quarterly/non-payroll deducted/no NSF checks reflected), resulting in a reserve account equal to three months of proposed mortgage payments (PITI) as a cash reserve post-closing; or
- Any other reference which gives insight into the applicant’s willingness to make periodic payments on a regular basis for credit obligations.

[Rlandon87]

Shane thanks for the reply... and my apologies... I should have been more clear. ..

Me and dw  both have 50+ accounts on each report... I am speaking about the new account and how will a lender look at them. Will it cause me to be denied. My oldest account is 9 years with AAOA of 3 years

[ShanetheMortgageMan]

No worries, but that certainly changes things (for the better).  New accounts won't be an issue as long as you have the existing credit history that meets USDA minimum requirements, so the new accounts shouldn't give you trouble.  Just closed a USDA loan for someone who had 4 new trade lines less than 6 months old, as they had a lot of old closed accounts but not much recent activity.

[Rlandon87]

Thanks, good to hear. I can't wait to pull the trigger... I'm going to update my "can I get a mortgage thread" if you'll take a look.