No Credit...Can You Still Buy A Home Today?

In my ventures and talking with people I hear a common phrase among younger individuals that say "I cannot buy a home because I have no credit and they (the mortgage companies) will not give me a loan." Unfortunately that is not true. There are numerous programs to help people with no credit history buy a house. I have sold a half dozen this year alone to home buyers with no established conventional credit history by connecting them to the right mortgage lender. Yes, banks prefer a credit score and a good one at that. Most lenders are looking for 620 or better credit scores but I have a preferred lender that can get loans approved with a credit score as low as 600. But what if you do not have a credit score? Can you still buy a house....The answer is yes. The lenders call it alternative credit. In lieu of a credit score and established credit history there is a way you can purchase a home with no credit. They look at your "trade lines". These are bills that you would be paying on a regular basis each and every month. Some examples are auto insurance, cell phone bills, rent, utilities, etc...Any monthly expense that you can document a history of paying for the past 12 months on time. They will ask for three trade lines. They also have to be in your name or at least your name must be on the bill. With these documents a lender I use will approve you for a mortgage. The amount of the mortgage will vary depending on what you make for income and can verify. But you will be able to purchase your first home and begin living the American dream that all of us at one time or another hope to realize...owning a home. If you have some trade lines that you can verify paying for at least 12 months on time then you should consider looking into buying a home before you start opening credit cards and other credit lines to buy a home. Dave diCecco Realtor/Broker Coldwell Banker United Cell: 704-519-7895 ddicecco@cbunited.com www.davedicecco.com