How do I get a FHA loan with no established credit?

FHA allows the use of "Alternate Credit" Such as rent payments, utility bills, cell phone bills (not pre paid cell phones), even regular deposits into a savings account can be used as alternate credit.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

You need to have a credit score and generally if you have no established credit you will not have a score. However, if you can get a co-borrower with a credit score of 640 or better you may qualify with the alternate credit lines such as rent, utility bills, etc. Feel free to call me - Linda - 801.550.1222 I can go over your situation and give you the best advice I can.

Alternate credit is allowable but most lenders do want to see a score first. A person who has never had credit at all extended to them is going to have a tough time and to my knowlege, alt. credit is used for those who have a credit score but have no open trade lines now.

Although there are a couple of investors that will do alternative credit approvals, they are much more costly. I would advise working with a local Mortgage Banker/Broker to find out what you can do quickly to get you on the scoreboard. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Alternative credit is great for people without credit. You would have to provide payment history reflecting on time payments!

FHA technically still allows you to build alternative credit - this is done by proving you pay bills on time. These bills are usually gas, electric, rent, etc. While FHA still allows it, most lenders do not. They still want to see some sort of credit score.

Hi, my name is Casey Persinger; in regards to your question it's true, cell phones, if you are paying for medical insurance that is not offered by your employer, rents (as long as you have a property managment company handling your rents) if not then I'd need 12 cancelled checks as well as a copy of the rental agreement, utilities such as gas, water, garbage, electricity, cable, Internet, satellite etc., etc. You CAN'T use motor vehicle insurance as that is something that is required in the state of Utah. I would need a 12 month history on a minimum of 3 alternate trade lines in order to help you. I have an office in West Point right next to you in Syracuse as well as one in South Ogden feel free to contact me with any other questions regarding this. I can be reached at 801-682-LOAN (5626) I have an "A" rating with the Better Business Bureau and have been in lending for 13 years.

Since your loan must be run through and automated system and be approved before a human can look at it, you must be generating a credit score. There are some programs that allow for "manual underwriting" but the way the market is, this have other higher restrictions to meet. The utility bills will help, but won't work alone by themselves. You need to start getting a credit history with credit cards and an auto loan if possible. 2 credit card companies that I like for first time users are Capital One and Orchard Bank. They will start you off with a small $200 to $300 limit. You don't have to max out the cards, just buy some groceries or fill up your car with gas and then pay off the balance when the bill is due. Each month you have activity will bring you closer to generating a credit scores.

Find a mortgage broker that covers UT and seek their help.

Have to agree with Travis. Alt Trade lines are ok but typically that is for someone that has at least 2 scores over the bench mark number. No scores will be a very tough go at it

eCredable is a consumer oriented Credit Reporting Agency that helps people prove they are creditworthy, by verifying the routine bills they pay which are not typically reported to the national credit bureaus. We generate a credit rating on a scale of A-F, which can be used by lenders who are willing to use alternative credit in their underwriting practices. Churchill Mortgage is a Nashville based correspondent bank who will use our AMP Credit Report and AMP Credit Rating to help consumers with no credit history, but can earn an "A" or "B" in our model to qualify for a home loan. The interest rate is typically 1.5% higher, but it's possible. We also work with RoadLoans.com, who will accept an "A" or "B", and qualify the consumer for an Auto Loan after they verify income. www.eCredable.com