FLORIDA HOME LOANS WITH NO CREDIT SCORE – NO PROBLEM!
Your probably curious under what conditions are needed qualify for a Florida home loan with no trade lines or no credit Score? Below, we have listed the no trade lines and no credit score Florida home loan requirments:
The maximum no credit score Florida home loan debt to income ratio is 31/43. For no credit score Florida loan applicants the maximum ratio 31% means no more than 31% of gross monthly income can be allocated towards the newly proposed housing expense. And, 43% means no more than 43% of your gross monthly income can be allocated for the newly proposed housing expense + plus all other monthly payments on your credit report.
- In addition, No credit score Florida home loan applicants must settle or pay all past collections in full.
- Loan applicants must provide a minimum of 3 alternate trade lines plus number 12 months canceled checks or VOR verification of rent from a managment company. 3 alternate trade lines include letters from direct service providers or a payment history that you have been on time for the last 12 months. Direct service providers include letters from electric, water, cable company, cell phone ect. letters must be year to date with your name and address showing timely payment history for the past 12 months.
- Must have a down payment 3.5% of the purchase price.
FLORIDA HOME LOANS WITH NO TRADE LINES OR NO CREDIT: Many no credit score Florida home loan applicants see lots of promotions offering bad credit Florida home loans. But rarely will you see an advertisement for Florida home buyers no credit? Due to the downturn in the economy consumers have been smarter with their finances and reluctant to borrow money they might have trouble repaying. As a result, there are now many well qualified Florida home buyers with little or no credit score. Some no credit score Florida home loan applicants went through bankruptcy or foreclosure and have shied away from using credit cards or borrowing money since then having learned the lessons of over spending. Some Florida home loan applicants immigrated to the United States from another country have ave not had enough time to build up a credit history. Whatever the reason for your lack of credit or lack of trade lines, you should know that it is still very possible for you to get a no credit score Florida home loan!
First, you should understand the criteria Florida mortgage lenders use in order to qualify you for a no credit score Florida home loan. The three basic things no credit score Florida mortgage lenders look at are your credit, income and your assets. Naturally every Florida mortgage lender some have their own personal criteria beyond the aforementioned, but these are the basics. You may not have a credit history to offer a Florida mortgage lenders leaving you to prove yourself in terms of income and assets. If you want to get a no credit score Florida home loan, you will need to have a good, solid income with a steady job. No credit score Florida mortgage lenders will also want you to provide at least 3.5% down payment and proof of the ability to make timely payments.
Once a no credit score Florida mortgage lender determines that you have the necessary qualifications, he or she may allow you to use sources of “alternate trade lines” for your No credit Florida home loan approval.. Alternate trade lines include letters from direct service providers to verity your timely payment history. Florida no credit score lenders use both payment history or letters of credit to verify that you have not been more than 30 days late. These letters or payment histories can come from any direct service providers including: apartment or home rental payments, your payment history of monthly bills like electric, water, cable , cell phones, or health insurance. These letters must be from direct service providers and must be recent and have your name and current mailing address on the letters or payment history.
There are basically two directions no credit score Florida homeowners can take in order to obtain a no credit score Florida home loan with limited credit history. You can try getting a hard money loan ( these loans are very expensive and requires a huge down payment). Or, no credit score Florida home loan applicants can apply for an FHA (Federal Housing Authority) home loan. Sub prime and private Florida mortgage lenders are are also available for those with no credit Florida home loans but again these private lenders are very expensive. There are several different types of loan products that these Florida no credit score home loan lenders offer, including fixed and adjustable rate mortgages. The downside is that these Florida no credit score home loans can come with higher interest rates and fees than you would get with an FHA loan or “prime” home loan for Florida loan applicants with good credit. The upside is that you can get into a Florida home today and you don’t have to wait 12 months to build a credit history.
The best bet for Flroida homebuyers with no credit score an FHA loan. These FHA home loans are designed to help Florida homebuyers with no credit score, first-time Florida home buyers, Bad credit Florida home loan applicants, as well as those home buyers with little or no money for a down payment. Florida FHA home loan applicants can get the best terms on this goverment inssured loan, however these loans are subject to Florida FHA loan limits. If you are buying in a high priced market an FHA loan wont help you accomplish your goal.