Mortage without credit score in Houston? (Bowie, Howe: rent, mortgage, credit report)

[tertius]

Hey,

We want to buy this year but we haven't had any form of credit but we have stable incomes and a long history of timely payments on rent and utilities.

I know that everyone doesn't give mortgages to people without credit/credit score. Does anyone know who does?

I just want to start doing some research on interest rates we'll get etc.

I'm going to start with banks, but I don't know if they'll be the best with costs and rates etc.

[nmnita]

The best thing you can do is get a credit card asap....Cut and dry, that might be your only way, especially in this market. Oh, by the way, when you get one you will need to use it.

NIta

[XodoX]

You NEVER had a credit card? Go get one asap and start bulding your credit.

[rubynicholson77056]

Originally Posted by tertius

Hey,

We want to buy this year but we haven't had any form of credit but we have stable incomes and a long history of timely payments on rent and utilities.

I know that everyone doesn't give mortgages to people without credit/credit score. Does anyone know who does?

I just want to start doing some research on interest rates we'll get etc.

I'm going to start with banks, but I don't know if they'll be the best with costs and rates etc.

Try NACA @ NACA.com. They don't look at your credit scores, however they do look at your report. If you have late payments, collection items, etc. and they are over 2 years old, they don't look at it. Anything under 2 years would have to be resolved. It is a timely process because they make sure you are ready for home ownership and not exceeding your debt to income ratio. They provide their financing through CitiMortgage and Bank of America. However if you can't commit to helping out around their office or working their information workshops 5 times out of the entire year or paying $50 a month for using them as a broker, you need not apply!!!

[Bo]

Originally Posted by tertius

I know that everyone doesn't give mortgages to people without credit/credit score. Does anyone know who does?

Radio debt-buster Dave Ramsey says that http://www.churchillmortgage.com does that. He says that with no credit score, you need a mortgage provider that does "manual underwriting."

[nmnita]

Originally Posted by rubynicholson77056

Try NACA @ NACA.com. They don't look at your credit scores, however they do look at your report. If you have late payments, collection items, etc. and they are over 2 years old, they don't look at it. Anything under 2 years would have to be resolved. It is a timely process because they make sure you are ready for home ownership and not exceeding your debt to income ratio. They provide their financing through CitiMortgage and Bank of America. However if you can't commit to helping out around their office or working their information workshops 5 times out of the entire year or paying $50 a month for using them as a broker, you need not apply!!!

dont know about the companies you are suggesting, but I can guarantee you, any company that will lend without credit background will charge either outlandish loan fees or a higher interest rate. If the Op has a good history of rent payments like he/she says etc, the best bet is still to get a credit card and use it.

Nita

[tertius]

Thank you Bowie that's great advice.

Thanks to all the others as well.

I'm marrying an American, I'm a South African citizen, so my "credit" here wont help at all. She hasn't needed to have a credit card, she has no debt and quite a bit of assets.

Btw. getting a credit card and using it will not give us a credit score in the next 2 months...

[Dougishere2]

Originally Posted by tertius

Thank you Bowie that's great advice.

Thanks to all the others as well.

I'm marrying an American, I'm a South African citizen, so my "credit" here wont help at all. She hasn't needed to have a credit card, she has no debt and quite a bit of assets.

Btw. getting a credit card and using it will not give us a credit score in the next 2 months...

Smart man, you are correct on the credit card not giving you credit in 2 months.

[XodoX]

If you do not have ANYTHING on your credit report a credit card will give you some credit in 2 months. Been there, done that.

[rubynicholson77056]

Originally Posted by nmnita

dont know about the companies you are suggesting, but I can guarantee you, any company that will lend without credit background will charge either outlandish loan fees or a higher interest rate. If the Op has a good history of rent payments like he/she says etc, the best bet is still to get a credit card and use it.

Nita

I have direct experience with NACA and it is a great, legit program. It is considered an "unconventional loan" meaning they don't necessarily look at credit scores, however the last 2 years of things reported on your file are screened. They look at the last 12 months on installment accounts and rent history. Friday's interest rate was 5.25% and when we used the program, the interest rate was locked in at 4.875 and we used some of the builders incentive money to buy down to 3.875. There are no "outlandish fees" other than the $50 a month membership payment which is used to help you if for some reason you run into unexpected expenses and can't meet your monthly payment and to provide you with support ( re-negotiating interest rates, etc.) if for some reason you lose your job or have a pay cut. Seeing that most banks look at your FICO score, this is a great option for someone who pays their debts, has a stable income but may not have as high a score because of problems in the past. You don't need that FICO score for everything you know....Ask Dave Ramsey!!!