If you are a first time homebuyer you may not have been able to establish very many credit lines. The traditional credit lines are such as student loans, credit card bills, car loans, and type of loan that are picked up by the credit agencies. This makes it very difficult to get a home mortgage loan because you don’t have a traditional "credit history". A mortgage company can’t tell you if have a history of paying off your loans.
If this sounds like you, there is some good news! It is called FHA Housing Loans. The FHA Loan Qualifications will look at other credit lines to determine you credit history. They will look at bills you pay such as utilities bills, phone bills, cable TV bills, day care center bills, rental bills, and other recurring bills. Most people have at least some of these types of bills.
The author of this article goes into more detail of FHA Loan Qualifications.
FHA Loan Qualifications – How to Prepare to Meet FHA Loan Qualifications
Only because you do not possess student loan, credit card bills, car disbursement and other conventional trade lines trailed by the credit agencies does not necessarily mean you cannot be eligible for a credit loan.
Most of the times borrowers searching for a mortgage do not have enough conventional credit history to give a lender with a rational credit rating. This is never a big deal!
The great news is that the FHA loan qualifications accept non-conventional credit in situations where you have inadequate trade lines with Equifax, Trans Union and Experian.
How does it work?
Nor-Conventional Credit References
FHA requires that as a borrower, you should have three credit references from two groups of non-conventional credit resources.
Group One- this first group of references is heavily weighted than the last group it is deemed to be a more precise forecaster of your credit value.
The first group comprises utility payments like electric, water and gas. Rental payments, cable TV bills and telephone can also be included in the first group.
Group Two- The qualifications for FHA are feasible by incorporating payment references like payment to day care, insurance payments, internet phones, and a 12-month bank statement that shows the history of deposits thus illustrating an increased balance. The last group also allows individual loan wherein the settlement terms are documented and signed by both concerned parties.
Applying for the FHA financing
In order to become eligible for the FHA financing, you should show that you are employed, have a good job status and that you are reliable. As you apply you have to give the following:
1.You must present your previous addresses within two years. If you are a couple that had varied addresses, you have to incorporate both of your addresses.
2.You must able to show your employment history in two years, that includes the name of your employer and their addresses along with your monthly gross income.
3.Present your income tax form and W2 for the last two years.
4.If you are a veteran, you will have to incorporate your discharge papers as evidence of you status as a veteran.
The ideal way to qualify for the financing program of the FHA is to illustrate that you have been a dependable credit holder within two years.
In order to do such, you have to settle your old debts, pay on time, avoid any major credit procurement like buying a new car and stay with one employer. Keep in mind that being eligible for FHA financing is a lot simpler that dealing with private lender but it’s not for free. You have to show stable employment, dependability and overall ability to pay on time.
Author: Brian I Park For more information on FHA Loan GuidelinesVisit ‘New FHA Loan Requirements’ at http://www.newfhaloanrequirements.com
Article Source: http://EzineArticles.com/?expert=Brian_I_Park
Comments: Even if you don’t have the traditional credit history there is hope you can purchase a new home with a FHA Housing Loan. If you want more tips on how to get a FHA Housing Loans please read this article "FHA Housing Loans – Tips For Getting A FHA Housing Loan!"
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Types Of FHA Housing Loans
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