How Long Of A Credit History Do I Need?
I'm in college and tried to buy my first property last year. It didn't work out because I had no credit. So I applied for an American Express student card that I've had for a year now. I've been great with it- paying off my bill every month on time. My question is, is this enough? I don't pay rent, I don't have a car note, and I only have the one card. I also only work part-time. Is a year enough? Or will lenders still look at me funny?
I'm not a mortgage broker but I believe a standard full doc mortgage wants you in the range of 3+ years of good credit history with 5 trade lines.
You should look into purchasing properties creatively if you would like to get into this business. You don't need cash or credit this way.
There are a few lenders that I have worked with that will allow three trade lines as long as they have 24 months history. Some lenders will take two tradelines if you have an alternate line of credit, for instance, a utility bill or insurance payment.
You said you are in college and have basically no debt - thats great. But it also says to me that you have somebody backing you financially. (Parents?) A part time job is not paying for tuition and liveing explenses.
Would they be willing to cosign for you laon? Aslo consider takeing out all of the college loans that you can qualify for - that cash would assist you in getting financing and the student loans are subsidized and at an unbeatable rate. Even if you don't need the money - if you qualify - borrow it and invest it. You should easily get a better return then you pay in subsidized interest. This will also build your credit history.
There are lender out there who will finance someone without credit scores. Nation One will
There are lender out there who will finance someone without credit scores. Nation One will