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First time home loan

My son has recently finished college and would like to purchase a home. He has had some school loans which were paid by automatic debit, so has credit history with them would be excellent. But that would be the only credit history he has. He paid cash for his car and has had no other major purchases. Is there a way a person in this situation can obtain a home loan? He is a full time employee of a business his father an I own and he will be an owner in the future.

by rylierall800 from , California. Mar 31st 2014 Reply


Chris Gummerson (cgummerson11)
#396 ranked lender in California - 648 contributions

Is the family business related to his school degree? You need 2 years of work history for a loan, but school can also be used for the history as long as the school and line of work are similar.

Mar 31st 2014
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Robert Hardy (rob.hardy@apmortgage.com)
#93 ranked lender in Washington - 13 contributions

Well most lenders require three open trade-lines of credit when applying on a home loan. I'd suggest having him apply for a credit card or department store card for starters. The account needs to be open at least 12 months with consecutive on time payments. Two years of employment would also be needed with verifiable w2's and or tax returns. If he was going to school and working in the same field then this may be a compensating factor. Questions? Pretty sure I got answers! Contact me at 425.988.2510 First Rate Mortgage Branch ID#397295 MLO#1069254

Mar 31st 2014
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

It's very possible he can qualify.. FHA allows for "Non Traditional" credit references.. rent payment, auto insurance payments, cell phone payments, utility payments, even a regular deposit into a savings account can be used as a credit reference.. The best advice I can give you is to have him contact a LOCAL mortgage broker and apply with them. Do not let him use the local "Big" bank, or one of those 50 states internet lenders or nationwide lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Mar 31st 2014
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Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,317 contributions

He may have enough credit lines to show a good FICO score. It is important that he be paid a W2 income, since he works for a family-owned business. Have him obtain his free credit report, as a start. A department store credit card or two, which show activity, will be a big help.

Mar 31st 2014
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