Buying property in the US with limited US credit history

Discussion in 'North America Real Estate' started by richakn, Sep 4, 2011.

  1. richakn

    richakn New Member

    Hi,

    My wife and I are considering a move back to the US (she is American, I am English) in the future and I wondered if anyone had any idea on how easy it is to obtain a respectable (rate wise) mortgage with limited credit history.

    I have a SS no and lived in NYC for 3 years and so I have some credit built up but nothing substantial. My wife has good credit.

    We would have a combined income of $200-$220k a year and would be looking to borrow around $600k (On a property of $800k (ish) , so around a 75% LTV)

    How feasible is this with a limited credit history?

    I am a HSBC customer in both the UK and USA, so not sure if this will help

    Any thoughts welcomed

    Rich
     
  2. Albufeira_Paul

    Albufeira_Paul New Member

    Hi Rich,

    When getting a mortgage in the U.S. credit is everything. It's good that you have a SS number already. But hopefully you have some open lines of credit in the U.S.

    My first suggestion would be to go get a credit report. There are plenty of companies that can give you your FICO report. Ideally your credit score should be at least 700. Anything above 770 is considered A+ and the top score is 850.

    If you do not have US credit cards get some, even if you don't need to use them. Charge a few things with them (never above 20% of the total) and never carry a balance. This can build up your credit score. However, for your first 6 months or so your credit score will take a slight hit, so never open a credit card within 6 months of applying for a mortgage.

    A credit score is calculated as follows:

    35% Payment History
    30% Amounts Owed
    15% Length of credit history.
    10% New Credit
    10% Types of Credit Used
     
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