how to get a mortgage without credit?

dixiecup246: how to get a mortgage without credit?
Me and my boyfriend are trying to get a house but neither of us have any credit. He’s has a great job and we’d actually be paying less each month in the house we want then what we’re paying at our rental now.

We’ve both tried applying for credit cards and keep getting the same response, “insufficient credit history” and we get denied. And none of our friends or family are at the point where they can co-sign for us. Is there anyway we can get a mortgage?

Answers and Views:

Answer by bud68
No. You will have to build credit histories first and that takes time. If you can’t even get a credit card, how do you expect to get a mortgage loan?

P.S. “bdancer” below is so right about not buying property jointly (or otherwise intermingling your finances) when you are not married.

Answer by honesty hurts
find a realtor that deals with first time home buyers,you will want to have 15 to 20 percent to put down. as a first time home buyer you will get government assistance in down payment and you do not need a long credit history if you make enuff and put enuff down. also you can try lending tree . com ,put youre info in there and if there are any banks/lenders that will help you ,you will be contacted by them ,,good luck

Answer by B
Not gonna happen, sorry. You may need to try a secured card first but you will have to put the money down on the card first. And for the answeer before mine about government assistance, they have cut most of those out, basically if you cant afford to save and put something down on a house you cant afford one (thats how they see it).

Answer by bdancer222
If you can’t even qualify for a credit card, there is no way you will past the much stricter requirements for a mortgage.

You each should go to your bank and apply for secured credit cards — you pay a deposit which is held as collateral against the line of credit. Use the card and pay it in full every month. After 6 months to a year, you should be able to convert the accounts to regular credit cards. Continue to use and pay in full every month.

You will also need a downpayment to buy a house. Put a set amount in a savings account every payday for this.

But most importantly, DO NOT jointly purchase a house unless you are married. There are courts set up to divide marital property. Not so for unmarrieds. It is never a good idea to mix your finances.

Answer by Dawn Indigo
No, the two of you will have to wait. The banks have very tight lending standards now because of the credit crunch.
In the meantime, apply for a secured credit card where you have to put money in an account, run up only 30% of the available balance and pay it off right away for a year before applying for a mortgage again. Also have you tried Orchard Bank? They often will give cards to people with no credit or bad credit. They gave one to me. The interest rate is high, but it’s better than nothing.

Also since your boyfriend has a great job maybe the two of you can be frugal and try to save as much as you can, 30% or better towards the down payment on a starter home – one that doesn’t cost much. Lenders will sometimes overlook your insufficient credit if you have more than 20% down and are willing to take less than what you are pre-approved for. But the two of you would really have to cut back on non-essentials to build up your savings.

Answer by Noneya
It is possible to use alternative credit with an FHA mortgage to buy a home. This entails using things like utilities, cell phone, car insurance, cable or any other bill that you pay every month that does not report on your credit.
Let me know if you need help or more info.