Are there loans that do not show up on credit report

34 Replies

"I think I need to be at about $206,000 to pay the closing costs and buy the home for $200,000. So I'm off by about $3000."

@Doug Christopher  I would try to negotiate the house you're buying down to $197k or have the seller pay for some of the closing costs, to cover the $3k gap.  I would think that would be most straight forward approach.

Originally posted by @Brian Cowan :

I am trying to purchase a property but do not have enough for the down payment yet as I just purchased another property recently...

If you are thinking of loans that do not show up on your credit report, it sounds like you may be talking about seller financing.

@Doug Christopher Most lenders only look to source money deposits of $5000 or more, so if 3 grand is all that's holding you back, and your father is willing to gift you that money, there should be no additional paperwork or holdup. If you wanted to work out private terms with your father, (since you make more than your tax return shows and can thus pay him back) you could fill out a simple gift form and take any money over 5 grand from him to put toward the house. Since he is a direct family member this is fully acceptable, the bank doesn't include that in your DTI. Which is fair, since they won't include your extra income either.

I don't know if this is an option for you, but it could help you finance the home you can afford.

@Brian Cowan ,

Sorry - coming to this a bit late ...

In answer to your question in the title of this thread, yes - there can be items which do not get reported to the credit bureaus.

The FCRA - Fair Credit Reporting Act - does not REQUIRE reporting, it only requires that anything reported meet four basic criteria. It must be:

  • Complete
  • Accurate
  • Verifiable
  • Timely

Anything on your credit report NOT meeting these criteria MUST - by law - be removed.

The issue is that the underwriter will see the funds coming into your account and you will be required to source the funds. So, you can not sneak funds even if you do not then for your down payment. But, gifts ARE acceptable source of funds for a primary residence (although not for an investment property.)  So, simply tell your LO you are getting a gift from your father and she will give you a gift letter for all parties to sign and you are on your way.

I'm a little confused as to why some of you are mentioning the 3k being gifted by his father. The OP mentioned his father would be paying 3k directly to Nissan in order to free up that same amount for him to use towards his home purchase, so the funds would never hit his personal account.

Get a good mortgage broker. Not all underwriters will look at your overtime the same way. Write a good "Letter of Explanation" (just like you did above but with documentation) showing that you have worked 60 hours per week for more than 2 years. It may not work but some underwriters are more flexible than others. Also, if your dad is willing to pay $3,000 to Nissan, see if instead he would be willing to give you that money as a gift with no strings attached. Conforming loans pretty much always allow for gift funds from an immediate relative, for a down payment.