20 years old, no credit

4 Replies

Hey all,

Been lurking for a while and soaking up all of the info on here. Finally biting the bullet and buying a condo as my first rental property. I am currently in college and recently started my own business. I have a source of income, but I do not have any credit. In the past 2 weeks I have taken out a credit card in my name to start building credit. I am located in New Hampshire. I was wondering if there was anyway around this so that I could get a loan. Could I possibly get my parents, who have great credit, to co-sign?

Yes, as long as they have good credit and good debt to income ratio. However, most lenders require you have a 640 personal credit score to be able to sign on the loan as an owner occupant.

I went through a lot of hassles while searching for a property to occupy. I had to take a break to build my credit. Did all that....found out my mom's debt to income wasn't good enough to qualify.

If I could start over, I'd interview a few different local lenders and ask what they look for on owner occupied loans, as far as the debtor.

Definitely learn about the types of lending available here in NH and how they effect you as a self-employed person. Usually you aren't lendable for at least the first 2 years, especially if you have no credit history.

Work those credit cards to build your credit up as high as possible for the first two years!

@Brennan Ross I agree, work with several lenders to see how it works and what their advice is to build credit. Things like Balance to Limit on CC is important, Lates are a killer, Student Loans ;-(

Yup credit is a powerful tool. Like it has been said, communicate directly with the lender to know exactly what they want to see. My only additional advice is to work with a local bank versus a large bank like Chase or Wells Fargo. Small banks or credit unions that keep the loans in house oftenhave much more flexibility with what they can and cannot due and what they are willing to deal with.