Haven't rented/paid utilities for years - FHA delays?
hey All,
I would be a first-time home buyer (Boston area) and am considering house hacking for my first rental property in nearby Manchester, New Hampshire. I haven't paid any utility bills or formal mortgage/rent in the past year as I am living with my parents. A BP article on FHA loans (https://www.biggerpockets.com/renewsblog/2015/03/2...) stated the following:
"not being able to demonstrate a history of payments that the vast majority of Americans are making each and every month can actually delay you significantly.
When you ask a bank for a loan, especially if you are a first time buyer applying for FHA financing, the lender will want to see the following:
- Your credit score
- Your income
- A track record of consistent and significant payments
Here are some examples of payments that you’ll want to have made (consistently) for at least a year if you are looking to get financing for your first property:
Item #1. Credit card payments
Item #2. Rent or mortgage payments
Item #3. At least one instance of a utility bill like electric/water/internet
It’s really easy to check and make sure that you are paying these consistently, but it’s also easy for a lot of folks to informally pay roommates/parents/loved ones for these types of services. Make sure that your name is on any credit card, lease/mortgage, and utilities that you pay. It’s important to demonstrate that track record to your lender."
So finally, here's the questions:
1) Do I need Items #1, #2, AND #3? Or do I just need one of them?
2) If I do indeed need all 3, are payments from 2+ years ago valid or does it have to be in the most recent year? Are they ignored if they are too far in the past (i.e. 10 years ago)?
I have a history of paying 12 consecutive months of student loans (although it wasn't the same calendar year since it started mid-2016. Wasn't listed though so I don't know if that counts.
I have paid credit card bills for the past few years consistently, a couple thousand dollars a year. It would be great if that was sufficient. If not....
I have paid rent, but only 2 years: 2016 (IF you count the months I subletted it for) and 2013. I'd have to double check if my name is on all those checks though.
I have not paid any cell phone / utility bills a year (6 month comcast bill from 2016, can't find my 2013 data).
3) I'm looking to buy a property in just a couple months so this won't help now, but for the future: I currently live at home, I pay rent in cash with no lease. Would it be smart to: pay one of my parents utility bills (and have them reimburse me?) And write up a lease so I am paying rent formally instead of informally?
thanks
Amil