FHA No Score Purchase Loan Program – This program allows a borrower to purchase a home with 3.5% down when they have no traditional credit established on their credit and limited or no derogatory credit on their credit limit. With alternative trade lines available, we can build a credit report manually with 3 qualifying trade-lines as follows:
- Must have verifiable rental history with either an apartment complex (management company rental verification) for preceding 12 months or private landlord and 12 months cancelled rent checks with no late payments
- In addition to rental verification, need two other alternative trades and open and active for preceding 12 months and paid on time such as: water bill, electric bill, sanitation bill, cable/satellite bill, auto or renters insurance paid monthly, etc.
- Debt ratio with new loan not to exceed 31% housing / 43% total debt ratio
- 2 months liquid reserves in assets after loan closing