Posted on: 16th Jan, 2014 11:19 pm
We are young and just starting out. We have great jobs but hardly any credit. We needed a vehicle, so we took out a car loan through a credit union as suggested by the car dealer but we had to go for a co-signer. For the past 1 year, we have never late on the payments. Can we now visit the same credit union and qualify for a mortgage to buy a home?
With a bad credit or no credit and a car loan with co-signer in your name, it will be quite difficult for you to get a mortgage. I will suggest you to improve your credit scores and then look out for a mortgage.
You do not have build any credit till now and you have obtained your car loan with a co-signer. Under such circumstances, it might be in your favor to qualify for a mortgage. What you can do is try to build good credit and then apply for a home loan.
You need to establish more credit - check with the credit union on their guidelines with regards to tradelines
Typically banks want to see a minimum of three tradelines (lines of credit) the car is one but it is only a year old - they also lie to see a two year history - your car will count as one
If you cannot get a card using credit get a couple of secured cards
You put $500 in an account and they let you borrow against it -
Good Luck
Brian Barnes
ENG lending
Nationwide Lender
Typically banks want to see a minimum of three tradelines (lines of credit) the car is one but it is only a year old - they also lie to see a two year history - your car will count as one
If you cannot get a card using credit get a couple of secured cards
You put $500 in an account and they let you borrow against it -
Good Luck
Brian Barnes
ENG lending
Nationwide Lender
There are mortgage lenders who lend when you have at least one trade line and at least one credit score.
Actually, there are lenders who lend mortgages based on non-traditional credit history which means you may have no credit score and you provide evidence that you paid other monthly/quarterly bills on time (rent, utility bills, insurance bills, etc). However, you are better off with at least one credit score because pricing for such lenders is based on the lowest credit score on which they lend.
The terms for the FHA and conventional mortgages with one credit score are exactly the same as they are for Borrowers who have three credit scores and lots of credit history--depends on what the credit score is.
You can ask the same credit union for a mortgage and find out what they require. If the credit union requires more credit history than one credit score, either open more credit accounts and buy later or simply find a lender who requires only one credit score.
The question is simply, do you have a credit score.
There are many lenders who have more stringent requirements, so, find and work with the oners who do not.
If you open more accounts you will probably lower the score you have. Do not open any new accuonts unless you do not plan on buying for at least 12 months from the time you open those new accounts.
I can do eveyhting I noted above, so, I know other lenders can also.
Actually, there are lenders who lend mortgages based on non-traditional credit history which means you may have no credit score and you provide evidence that you paid other monthly/quarterly bills on time (rent, utility bills, insurance bills, etc). However, you are better off with at least one credit score because pricing for such lenders is based on the lowest credit score on which they lend.
The terms for the FHA and conventional mortgages with one credit score are exactly the same as they are for Borrowers who have three credit scores and lots of credit history--depends on what the credit score is.
You can ask the same credit union for a mortgage and find out what they require. If the credit union requires more credit history than one credit score, either open more credit accounts and buy later or simply find a lender who requires only one credit score.
The question is simply, do you have a credit score.
There are many lenders who have more stringent requirements, so, find and work with the oners who do not.
If you open more accounts you will probably lower the score you have. Do not open any new accuonts unless you do not plan on buying for at least 12 months from the time you open those new accounts.
I can do eveyhting I noted above, so, I know other lenders can also.
