Getting a Mortgage Loan with
Limited Credit History

 

Are you in the market for your first home, but worried you won't qualify for a mortgage because you have a limited credit history? In the past, having a limited credit history might have kept you from your dreams of home ownership, but today, CityWorth Mortgage can approve mortgage loans with competitive interest rates and terms to borrowers with limited credit histories.

What is considered a limited credit history?

Your credit score, which can range from 300-850 is based on several factors, including length of credit history. Generally, your credit history will start with your first credit card or first loan, and payments made on those accounts appear on your credit. If you have never had a credit card, or don’t currently, and have never had any loans for items purchased, you have a limited credit history. When it comes to home loans, lenders want to see patterns of consistent fiscal responsibility, so even if you have a credit card, if you haven’t had it for a significant period, lenders may see your credit history as too limited. This could mean they see you as a financial risk.

 

Can CityWorth Mortgage help me?

CityWorth Mortgage can help prospective home owners get into the homes of their dreams for a few key reasons. Most importantly, we have an in-house underwriting department which means that we have expertise when looking at prospective borrowers. Our underwriting guidelines are not set by some large, out-of-state company with no room for deviation; instead, our bankers can speak with our underwriters to give them a more complete picture of each borrower. Read about our alternative qualifying methods and how you can get into the home of your dreams with a limited credit history. 

We're available to answer any questions you might have about the home loan process, and you can even get pre-approval right online! If you are thinking about buying a home but won't be in a market for a year or so, this is a great time to build up your credit history. Don't apply for a bunch of cards all at once, or loans for items you don't need - but if you were in the market for a new car anyway and planning previously to pay cash for the car, or if you currently have no credit cards, building up your credit history may help make it easier for you to qualify for the best loan at the lowest interest rates when you are ready to buy. Just remember to not take on too much new debt so that you can still qualify for the new mortgage.

 

Call us toll-free today at (877) 908-6250 to learn more about the programs we have for first-time homebuyers, including those with a limited credit history!