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I have steady income but no credit cards. I don't want to have to go into debt to show my creditworthiness. Is there another way to obtain a loan without building credit the traditional way?

by harrison.t16 from Palo Verde, California. Mar 28th 2016 Reply


Lorne Harvey (lorneharvey)
#80 ranked lender in Washington - 431 contributions

Yes, some lenders will write a loan using non-traditional credit. They would want a 12 month history of items like: rental history, utility payment history, storage unit history, cell phone history, things like this. I believe they will want at least 3 tradelines like this with a 12 month history.

Mar 28th 2016
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Much more info needed to say specifically if you can get approved or not, but to answer your question.. There are, but there's also programs that look at "Alternative" type credit references.. Insurance payments, utility payments, rental history.. even a regular monthly deposit into a savings account can qualify.. so it's possible you could qualify now even though you have limited or no credit.. to know for sure, you should contact a LOCAL mortgage 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 your LOCAL 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 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 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 NMLS# 226347

Mar 28th 2016
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Larry Gray (lgray_312_247)
#593 ranked lender in California - 1,139 contributions

Lorne Harvey covered it...nontraditional credit loan. One way on a fannie mae or Freddie mac conventional or fha loan you might qualify is by simply having a co-borrower with a credit score and we can use your nontraditional credit in conjunction. Any further questions please do contact me via my Profile.

Mar 29th 2016
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Sara Deere (Mortgagequeen2)
#1 ranked lender in Missouri - 570 contributions

It will be much easier to qualify via FHA with no credit score (ghost buyer) using at least 3 positive trade lines. The trade lines need to be items that are not ACH out of a checking or savings account.

Mar 30th 2016
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