What if, for one reason or another, you have very limited credit such as just one loan reporting paid on-time?
Believe it or not! It is possible for a 1st Time Buyer to purchase a home with only one loan reporting on credit AND we actually just closed a No Money Down purchase like this! Imagine, you could be relaxing in your own back yard oasis!
Whether you have very limited credit because you are recently graduated from college, new on a job, unsure of what type of credit to establish, or just flat out don’t like debt, it is still possible to get a home loan with low to no money down. One thing to remember is that if you have very limited credit, it needs to be good credit. For instance, if a borrower has several collections but only has one on-time account, that would have a very hard time getting approved.
So How Did We Close a First Time Buyer with only 1 credit trade line with No Money Down? Check out the Details!
Obstacles to Overcome on this Purchase:
- Very limited credit report – Only 1 loan reporting (paid on time) for over 12 months
- No derogatory credit – Since the credit is limited this is important for approval
- No money down – Needed a way to buy with no out of pocket money
How We Solved These Obstacles So the Buyer is Now a Homeowner:
- USDA No Money Down Required- Buyer actually received money back at closing!
- Used alternative credit reference to meet credit minimums – Car insurance paid on-time
- Proved on-time rent history – If you rent, learn how to document it
So even though many believe a buyer must have extensive and perfect credit to purchase a home, this proves that with as little as on-time rent, paid as agreed car insurance, a loan or credit card paid on-time for 12 months, and a good credit score, buying a home with no money down is a REALITY.
Count on our team of USDA loan experts to have the guideline knowledge and a CAN DO Attitude in order to make your dream of owning a home come true.
Author: Russell Smith
Team Move OVM Financial loan officer success is Russell’s primary focus. He provides the tools and techniques he used as a top producing loan officer. Additionally he offers the Team Move OVM Financial Agent Training Program. Sharing is so important to Russell so he works diligently to be a resource to loan originators and Realtors.