Editor’s note: This post was originally published in 2008 and has been substantially updated to reflect current FHA guidelines. Underwriting rules change regularly — contact me with questions about your specific scenario.

What If You Don’t Have a Traditional Credit History?

Most mortgage programs expect to see an established credit history — a handful of credit accounts reported to the bureaus with a track record of on-time payments. But not everyone builds credit that way. Some people pay cash for everything. Some are new to using credit. Some come from cultures or backgrounds where borrowing on credit isn’t the norm. [Read more…]