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I found a home pretty cheap and I would love to own instead of rent. I have tried to get loans and they say I have NO credit. Help

by swanner417950 from Collierville, Tennessee. Apr 17th 2017 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

More info needed.. but typically, we never find anyone with NO credit.. you might not have any credit scores, or you might have a few collections, but rarely is there no record... But if this is your scenario, then you do have options.. Try reaching out to a mortgage broker, not the local bank on the corner.. FHA has a program that allows for no credit score borrowers which allows them to use "Alternative" credit references.. Car insurance payment history, cell phone, utilities, rent, even a regular deposit into a savings account can all be used to develop a alternative credit profile. But this type of loan is a lot of work, and typically, your big box bank on the corner will not spend the time to work on a file like this.. Also, when you say "Pretty Cheap".. understand that all lenders have "Minimum Loan Amounts".. for some it's $40K, for others, it's as high as $100K.. Lending rules restrict how much a lender can make on loans.. and for the lower loan amounts, there's just not enough to be made, so the lender will raise their minimum loan amount to where they feel they can make it worth while. The best advice I can give you is to contact a mortgage bank/broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with a Banker/Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the banker/broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the big box banks. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Apr 17th 2017
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