Need Three Tradelines to Validate a Credit Score?

4 Replies

Hello everyone,

I am going through the mortgage approval process and though everything else checks out (good income, credit score, reserves) she is claiming that I cannot qualify for an investment loan because I only have one tradeline (a credit card). She says that I need three tradelines with 12 months of reporting history to validate my credit score. If I were going for a primary occupancy loan, then we could use rental/utilities history, however we are going for an investment loan (obviously) so I'm out of luck.

Has anyone else had experience with this? Is this a typical lending requirement?

@Jerry Padilla  Thanks for the reply. For those that do, is it mainly due to the fact that they are selling the mortgage and need to comply with regulations?

Any tips on how to find one that doesn't require three trade lines? It's aggravating because even though everything else checks out, this is what is currently holding me up.

@Brandon Hall  

They want to see a decent credit history of on time payments. 1 tradeline does not show much. For primary residences that the loan is VA or FHA, you can add non-traditional credit, aka cell phone bill, gym membership, etc. The problem is only conventional loans finance investment property's, and conventional loans do not accept non-traditional credit.

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