Really Confused

Discussion in 'Credit Talk' started by AnnMarie, Mar 22, 2001.

  1. AnnMarie

    AnnMarie Well-Known Member

    I need some serious advise.
    I plan on buying a house this year.
    I don't know if we will go conventional or FHA but regardless, I know the lender will want to see payment history of rent, etc
    This is my problem. I own the home we have now but it is carried by a private person that doesn't report. Problem 2: I don't want them to report or use that payment history. It's horrible. This may sound strange but my house is the very last thing I pay. I often go long periods of time without making a payment since the only consequences are the late fees (which are worth it to utilize my funds differently on things that do report, etc)
    So, even if I pay the payment from this day forward on time, I still won't have the 1-2 years proof of good payment history. What do I do? Do *I* supply the payment history?
    Also, I'm thinking that I shouldn't even CLAIM that I have this home--the payment is small so I'd like to keep it out of my whole ratio calculations.
    This is kinda stressing me out, any help out there?
  2. me

    me Well-Known Member

    I don't think you can keep it out of the ratio calculation unless you liquidate it because you are contractually required to pay the mortgage on it.
  3. Momof3

    Momof3 Well-Known Member

    My broker told me that they look at your credit reports payment history, if I remember correctly your scores are in the mid/high 600's correct?? It is only if you don't not have sufficient credit history that they will look at rental history, utilties etc as proof you pay your bills You could say you lived with your parents possibly?? Also my rental history ws verified by my 85 year old landlady . I gave them her name and address and phone number, they sent her a form to fill out, so I think you could figure out someway to do this.
  4. Cadillac408

    Cadillac408 Well-Known Member

    What do they want to see as proof of payment history? Canceled checks? Or do they want to verify w/ someone?

    I guess if you get this loan, your house will be the very FIRST thing that you'll pay! :-\

    FYI.....I have a friend who's boyfriend was in a similar situation as you. He needed to show payment history of rent. He lied and said that he was the maintenace guy at an apt. complex and he worked in exchange for rent. He only gave them the name of the complex and THEY CALLED and found out that he lied! They were going to forget about the whole loan and house until my friend stepped in and provided them w/ copies of bank statements for rent that he had actually paid. The reason why he didn't tell them the truth was because he actually got evicted from there because he got into it with managment (not for not paying rent) and he was scared that an eviction would prevent him from getting the house but it didn't. They didn't care about it.
  5. AnnMarie

    AnnMarie Well-Known Member

    My score right now is 670 and I'm still in my first round of disputes. So, I do hope that it was come up! My most recent bad thing is from 9/99 (last activity 12/98)and on that account I was an AU so that should help a lot I would think--if I can get it off! FirstUSA is reporting the account on my husband's and my own report--both reports reflect that it is an "individual" account. lol
    So, you think that with good enough credit they won't even ask?
  6. kim

    kim Well-Known Member

    I paid rent to my sister for 2 years. She provided a letter saying that I was responsible for paying her in $xxx.00 per month.

    On the loan application I filled out it showed both, current rent (to my sister) and expected mortgage payment.

    Do you have paper work in your name on the house? Closing documents or title or anything that this house is legally yours. I believe they will ask about your current living status ~ owning or renting or leasing.
  7. AnnMarie

    AnnMarie Well-Known Member

    Right, I have all the legal papers but there is no record onthe CRAs that I own it--or that I have this responsibility at all.
  8. judyputy

    judyputy Well-Known Member


    Did the letter from your sister work fine for the loan people. I will have the same problem when we move out next year. I pay rent to my mom. We moved in here after my dad died to help her out. But I have paid her for 4 years every month. I was wondering what i would do in that situation.

    We did own a condo before and have that payment history for 5 years that is perfect.

  9. Kelly

    Kelly Well-Known Member


    When we bought our home last month we didn't need rent verification. Ours is an FHA loan. Hubby's score was 636 at the time (now 649 - yeah - going up) Our lender did mention having his parents sign a paper stating rental history. We didn't end up needing it i guess, cuz it never materialized. Would your home owner's be willing to sign such a paper?

  10. AnnMarie

    AnnMarie Well-Known Member

    Re: verification

    Hmmm.....I doubt it since I haven't been that wonderful but they sure are making a lot of money off of me :)

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