Some nontraditional credit sources...

Saturday, 12 May 2012 13:45

What are nontraditional credit sources that can be used for borrowers purchasing a home that need to supplement their thin credit file?

A common problem when some are trying to qualify for a mortgage loan is the lack of recent good credit.  If a borrower does not have enough credit or any credit at all reporting on their mortgage credit report, some of our mortgage programs will allow a borrower to prove pay history through alternative sources to supplement the credit report.  Nontraditional or alternative credit sources include but are not limited to the following:

  • Rent – if the borrower can supply the last 12 month’s cancelled checks, it would be best
  • Insurances such as auto, life, medical, supplemental (excluding those paid through payroll deductions)
  • School tuition
  • Payments to retail stores
  • Evidence of reserves of assets built through steady monthly savings
  • Rent to own stores
  • Small finance company accounts
  • Car lot financing
  • Gym or other club membership

If a borrower is looking to use these sources for additional credit, request a credit reference letter from each source covering at least the last 12 months history


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Thank you for making this transaction so enjoyable.  Russell and Amy went over and above all that was expected.  We will recommend them to all our family and friends.
Larry M.,...