Jan 062013
George Souto

George Souto NMLS# 65149 is a licensed Mortgage Loan Originator for McCue Mortgage a CT based Mortgage Co., that specializes in First Time Homebuyers, and FHA, CHFA, VA, & USDA Loans.

Recently there was a comment on one of my blogs about Non Traditional Credit.  For those who are not familiar with the term, Non Traditional Credit it is a process of creating credit history for Borrowers who have insufficient credit scores, or no credit scores at all.

There are basically three reasons why a Borrower has insufficient credit scores, or no credit scores at all:

The Borrower has never bought anything on credit before.
The Borrower had all their credit accounts closed, usually because of a bankruptcy, and has not reestablished credit again.

The Borrower had credit but stopped using it, because they purchases everything with cash.  As a result they lose the credit scores that they once had.  If the Credit Bureaus no longer have active credit accounts to evaluate a Borrowers payment history, then they will not be able to provide the Borrower with credit scores.

If a Borrower does not have credit scores, then they cannot qualify for a Mortgage,    therefore,


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