Question about credit history length for mortgage approval.?
My husband and I are looking to purchase a home next spring. We're most likely looking at FHA for various reasons. The problem we have is that our credit history is fairly short. I pulled our reports early this year to make sure our credit was OK, and there was nothing there. I got us both three lines of credit that have added points to our score, but since I just opened them this year, I'm afraid our length of credit history will prohibit us from getting a mortgage. Our scores are in the high 600s, low 700s now. Not too many inquiries, and about 10% for a down payment. Any thoughts?
Public Comments
- FHA will be fine IF you can show proof that you have 12months of rental history, car insurance, utility bills, phone bills......that were paid on time. You will need 3. Most times they will accept what's on your credit report. 2.25% is minimum down payment......putting more money down will not change the rate
- You should be fine. Stick with FHA so you don't have to pay PMI. Right now I'm doing a 100% mortgage (he is paying pmi) for a 21 yr old, 680 Credit Score and only has one line of credit open and he got approved with no problem. Having little credit is definitely better than having bad credit.
- Make sure you have at least 5 trade lines open NOW. Use them every month and pay them off every month. You need to show history of timely payments by the time Spring rolls around. You might still have a problem and have to show another 12 months of timely payments... regardless, start asap! http://www.choicerealestate.net/
