This post is written by Holly Rogers, a mortgage lender in Steamboat with over 20 years experience. You can email Holly or call her at (970) 875-1636.
It is a very exciting time to be a first time buyer in Steamboat Springs with the $8,000.00 tax credit, historically low interest rates and a large inventory of Steamboat real estate to choose from. Many people are asking me what they can do to buy their first Steamboat home.
I have had several borrowers of late that did not have a credit score. Not to worry, even if you do not have a credit score you have an opportunity to still get a 100% financing on your first home.
What we have to do is build alternative credit history and that can be from a variety of sources.
Some sources that do not report to the credit bureaus but can show you have a good history of paying on time are:
- your landlord,
- the cell phone company,
- any of the utilities i.e.: Yampa Valley Electric or Atmos Gas,
- the cable TV company,
- your car,
- health or life insurance company.
You can also go to the bank and get a secured credit card as your first card.
Be aware the credit history must go back a full twelve months and not have had any late payments. The best thing to do is get a letter from these “alternative” credit sources showing you have had the account at least 12 months and that you have paid as agreed. You then can take those letters to the mortgage company and they will be able to build a credit history for your mortgage file
The USDA 100% financing program only requires you furnish them three of these above items to establish your credit history.
If you do not yet have a full 12 months established you will need to wait until you do to finance a home in Routt County. It is also a good idea to start building credit relationships that will report to the credit agencies as soon as you can so you will be able to get a credit score.
If you have any questions about credit or credit scores or any other home financing questions please call me at (970) 875-1636.
Yampa Valley Bank