FHA accepts prepaid credit card history. FHA looks for a minimum of 12 month credit history on non-traditional credit history. Cable, mobile phones, land line phones, rent, buy here pay here car loans, rent to own, renters insurance, car insurance – any thing that you paid for 12 months or more.

Prepaid credit cards allow you to set up bill payment with all of above. All payments must be paid in a timely matter to qualify. Prepaid credit cards reports to the credit bureau on non-traditional credit history if you sign up for the program. But remember it will also report untimely payments as well.

FHA requires minimum of 3.5% down payment with acceptable credit history. But some monies can come from gifts or grants. All collections must be paid in full. Only allowed to have 1 disputed creditor at time of application. Documentation must be provided for disputed creditor.

There is no minimum credit score requirement, having at least 620 score or higher will make you a more serious home buyer to get approved. You also won’t be automatically disqualified if you have a bankruptcy or foreclosure if enough time has passed.

FHA also allows you to purchase a multifamily home as a home owner and the 3.5% still applies. This helps to lift some of the burden off the a home owner. If you purchase the home with a tenant and 12 lease is in effect. Rental income is included in your income to help with your debt to income ratio.

All homes will require a home inspections on all FHA mortgage loans. Which helps see unforeseen problems in the future. The goal is that the home owner will not have to go in making repairs after closing. This is in the best interest for the home buyer and the lender. Sellers makes repairs prior to closing.

The federal tax credit deadline has passed requiring buyers to have a home under contract by April 30 has added to the popularity of FHA Loans. Offering low down payment, flexible underwriting, and more lenient credit requirements, FHA loans assist first time and moderate income buyers with affordable home financing options.

FHA guidelines are designed to offers more leniency for evaluating each borrowers need. Where Fannie Mae & Freddie Mac doesn’t offer flexibility for borrowers situations.

Get a copy of your credit report from all 3 credit bureaus to see where you need to start. You will be surprised what may be on your credit report. If you have no credit get prepaid credit cards and start documentation on payment history. Contact a Mortgage lender to find out your options. What needs to be done to prepare your self to purchase a home.

Prepaid credit cards allow direct deposit for payroll. Card to card transfer at no cost. Many have several cards. One for bill payment and another for spending money to stay within their budget & one for their down payment. Helps many achieve their goal and stay focused on the task at hand.