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HERE WE GO !!!

Mortgage Possibility ?

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My sister makes about $86,000 per year. She has only 1 collection that is paid and will fall off credit reports February 2017. The collection was for $77.00 and she thought her insurance would cover. 6 months later she was turned over to collections and she paid it immediately. No other derogs of any kind. She has no credit cards !! She has just been approved for a $800.00 secured card.

 

She wants to buy a house around September 2017. I told her to get 2 more secured cards ASAP.

 

Do you think its possible for her to get a house within that timeline with such limited credit ? If so, what kind of interest rate do you think she would be looking at ?

 

Anything else you think she should do to make home buying a reality ?

 

 

Thanks

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She should get copies of all three of her credit files, then do early obsolete disputes on that negative, and find out what her mortgage FICO scores are.

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My sister makes about $86,000 per year. She has only 1 collection that is paid and will fall off credit reports February 2017. The collection was for $77.00 and she thought her insurance would cover. 6 months later she was turned over to collections and she paid it immediately. No other derogs of any kind. She has no credit cards !! She has just been approved for a $800.00 secured card.

 

She wants to buy a house around September 2017. I told her to get 2 more secured cards ASAP.

 

Do you think its possible for her to get a house within that timeline with such limited credit ? If so, what kind of interest rate do you think she would be looking at ?

 

Anything else you think she should do to make home buying a reality ?

 

 

Thanks

I cant help on the Mortgage advice but has she checked the Cap 1 prequal?

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Thanks guys for the quick replies. We pulled her FICO's for all 3 bureaus but she has no score because she has never had any CC's or financed anything. She paid cash for her 2013 car last year. The paid collection is 6.5 years old. On Transunion it says her score is 4, whatever that means. Equifax and Experian reports say nothing regarding a score.

 

Also, she is out of town right now on business so I don't know if she has tried the Capital One prequal ? I will find out when I talk with her.

 

She rents a house right now and in 4 years she has NEVER been late, in fact she pays 2 months in advance..

 

I will tell her about the obsolete dispute.

Edited by HERE WE GO !!!

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Thanks guys for the quick replies. We pulled her FICO's for all 3 bureaus but she has no score because she has never had any CC's or financed anything. She paid cash for her 2013 car last year. The paid collection is 6.5 years old. On Transunion it says her score is 4, whatever that means. Equifax and Experian reports say nothing regarding a score.

 

Also, she is out of town right now on business so I don't know if she has tried the Capital One prequal ? I will find out when I talk with her.

 

She rents a house right now and in 4 years she has NEVER been late, in fact she pays 2 months in advance..

 

I will tell her about the obsolete dispute.

 

There is a good thread on obsolete disputes. Have her read it and understand it before she takes action.

 

If she has nothing else on her credit she needs to get two more credit cards ASAP, wait six months, and check her scores.

Edited by cv91915

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I don't know much about them so I Googled them and watched people's reviews on YouTube. The biggest complaints were NACA dragged there feet some people reported being in the program over a year and still haven't closed. I know it's a YMMV thing but the reviewers basically laid it out as if your credit it decent look elsewhere. But if your credit is shaky this is the loan for u.

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There are plenty of lenders who will accept alternative trade lines of credit in lieu of a credit score, especially for an FHA loan. Alternative trade lines that can be used include 12 months rental history, utility bill payments, auto insurance payments and cell phone payments. I once used a client's Netflix account as his third trade line! Typically you will need three alternative trade lines and need to show a 12 months of history of on-time payments.

 

But I do agree your sister needs to start building traditional credit and opening a secure credit card is a good way to do that, along with having a mortgage payment. Best of luck to your sister! This is not out of her reach at all.

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There are plenty of lenders who will accept alternative trade lines of credit in lieu of a credit score, especially for an FHA loan. Alternative trade lines that can be used include 12 months rental history, utility bill payments, auto insurance payments and cell phone payments. I once used a client's Netflix account as his third trade line! Typically you will need three alternative trade lines and need to show a 12 months of history of on-time payments.

 

But I do agree your sister needs to start building traditional credit and opening a secure credit card is a good way to do that, along with having a mortgage payment. Best of luck to your sister! This is not out of her reach at all.

I talked with my sister this morning and she is really excited that there is a very good chance she can obtain a mortgage.

 

I told her about the alternative trade lines that you talked about in your reply that lenders will accept people without a lot of credit history.

 

 

Thanks again everybody.

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There are plenty of lenders who will accept alternative trade lines of credit in lieu of a credit score, especially for an FHA loan. Alternative trade lines that can be used include 12 months rental history, utility bill payments, auto insurance payments and cell phone payments. I once used a client's Netflix account as his third trade line! Typically you will need three alternative trade lines and need to show a 12 months of history of on-time payments.

 

But I do agree your sister needs to start building traditional credit and opening a secure credit card is a good way to do that, along with having a mortgage payment. Best of luck to your sister! This is not out of her reach at all.

I talked with my sister this morning and she is really excited that there is a very good chance she can obtain a mortgage.

 

I told her about the alternative trade lines that you talked about in your reply that lenders will accept people without a lot of credit history.

 

 

Thanks again everybody.

 

 

Some lenders.

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