Entering U.S. With no Credit History - Can I Get a Mortgage Loan?
Reader Question: I am entering the U.S. for the first time and therefore I don't have a credit history at all. I wish to purchase a condo in Orange County for about $150,000 and I am prepared to pay 20% as down payment or equity. What are the chances of getting a mortgage loan?
Normally this would be a fairly easy question to answer, but you are coming into the U.S. at a time when our economy is "touch and go." The economic conditions this month are far different from last month, and who knows what next month will be like.
I have some friends from England who got a mortgage loan soon after entering the U.S., so they were in a similar situation as you (no credit history within the U.S.). I know they had to put 20% down on their home, and it may have been even more than that. It was at least 20% for sure. Both the husband and wife had to show proof of income as well, and also their legal immigration status (visas).
They were able to get approved for a mortgage in the same ballpark as the $150,000 range you are talking about. In fact, their loan was a little more than that amount. With that being said, they went through the process about three years ago ... before the economic crisis ... before the subprime mortgage collapse ... etc. So things may very well be different today.
Having 20% down will certainly help you. With everything going on in the U.S. economy right now, the days of "no interest" mortgage loans are gone. Most lenders today are requiring 20% on mortgage loans, verification of income, and higher credit scores.
The only way to find out for sure is to request a free mortgage quote from lenders. For people who are in questionable qualifying scenarios (such as having no credit history), I usually recommend getting offers through a website like LendingTree. Their service will give you offers from up to four lenders at once, which increase the chance of getting a favorable offer. There's a link in the upper-right section of this blog (under the "Home Buying Tools" label) that will connect you with the LendingTree quotes page.
Hope that helps you out some. Good luck.
Normally this would be a fairly easy question to answer, but you are coming into the U.S. at a time when our economy is "touch and go." The economic conditions this month are far different from last month, and who knows what next month will be like.
I have some friends from England who got a mortgage loan soon after entering the U.S., so they were in a similar situation as you (no credit history within the U.S.). I know they had to put 20% down on their home, and it may have been even more than that. It was at least 20% for sure. Both the husband and wife had to show proof of income as well, and also their legal immigration status (visas).
They were able to get approved for a mortgage in the same ballpark as the $150,000 range you are talking about. In fact, their loan was a little more than that amount. With that being said, they went through the process about three years ago ... before the economic crisis ... before the subprime mortgage collapse ... etc. So things may very well be different today.
Having 20% down will certainly help you. With everything going on in the U.S. economy right now, the days of "no interest" mortgage loans are gone. Most lenders today are requiring 20% on mortgage loans, verification of income, and higher credit scores.
The only way to find out for sure is to request a free mortgage quote from lenders. For people who are in questionable qualifying scenarios (such as having no credit history), I usually recommend getting offers through a website like LendingTree. Their service will give you offers from up to four lenders at once, which increase the chance of getting a favorable offer. There's a link in the upper-right section of this blog (under the "Home Buying Tools" label) that will connect you with the LendingTree quotes page.
Hope that helps you out some. Good luck.
Labels: Home loans
posted by Brandon at
11:12 AM
