Charlotte Real Estate, Foreclosures, Short Sales

Buyers needing to purchase a home and grab a great deal during this long-run buyers market are applying for FHA loans.  Many first-time homebuyers are doing their homework and taking advantage of Non-Traditional Credit eligibility to qualify for loans.  Borrowers and others who do not use traditional credit must have the lender develop a credit history from utility payment records, rental payments, automobile insurance payments, or other means of direct access from the credit provider. The lender must document that the providers of non-traditional are legitimate verify the credit information. Documents confirming the existence of a non-traditional credit provider may include a public record from the state, county, or city records, or other means providing a similar level of objective confirmation.

How Lenders Verify Non-Traditional Credit

To verify the credit information, lenders must use a published address or telephone number for that creditor. As an alternative, the lender may elect to use a non-traditional mortgage credit report developed by a credit-reporting agency, provided that the credit reporting agency has verified the existence of the credit providers and the lender verifies that the non-traditional credit was extended to the applicant. The lender must verify the credit using a published address or telephone number to make that verification.

You May Need to Shop Around

Some lenders due to our current credit crunch are trying to avoid using non-traditional credit because it is so hard to sell the loans in the secondary market.  You may see "pricing hits", or add-ons.  Lenders are allowed to implement their own underwriting guidelines. 

How to Get an FHA Loan