Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

"From the minute you call me to the minute we close, I have your back. No hassles, no banker’s hours & quick response times." - Scott Storace

  • Home Loans up to $3,000,000
  • Interest Rate Float Down Option
 

Have Questions? Call 949.973.0141

Non-Traditional Credit for Home Loans

Adverse CreditThe importance of traditional credit for obtaining a home loan cannot be understated. Great credit increases eligibility for loan programs. It also reduces interest rates and lowers costs. To get your foot in the door of a new home the minimum FICO score is typically 620 or above in today’s world.

But what if you don’t have credit? What if you have only 1 or 2 scores? The door might be closed by some lenders. But many people don’t like to use credit. They prefer using cash. This ensures they live within their means. Others have had an adverse experience with credit. The temptation and easy access to goods and services led them to declare bankruptcy.

Limited Credit Doesn’t Close the Book

 A FICO score helps determine your creditworthiness. But it’s not the only measuring stick. At PrimeLending we allow the use of non-traditional credit to help you qualify. The allowances vary by program. Some allow the full use of non-traditional credit. Others require at lease 1 score and allow you to supplement with non-traditional credit.

What is non-traditional credit? These are sources of credit that are not listed on your credit report. Common sources are rent, utilities and insurance. Traditional credit includes itemized that are financed such as bank loans for vehicles, credit cards, mortgages and student loans.

An acceptable non-traditional credit account requires a minimum 12 month history with no late payments.

Using non-traditional credit does have an increased level of risk. The lack of credit history makes it more difficult for investors to judge the risk you pose as a borrower. Therefore, points are charged by the investor for this option.

Quick Fixes and Permanent Repairs

Whether the job is big or small, credit repair is an important tool for helping mortgage seekers. We have programs that identify what you can do to reach a specific score. We have partners who can overhaul your credit report. They can remove derogatory credit such as collections, late payments and charge offs and much more.

Do you think that a lack of credit is preventing you from purchasing a home? Click here and contact me. I’ll help you navigate through the credit labyrinth.

Scott Storace

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