{"id":47420,"date":"2019-07-26T07:58:53","date_gmt":"2019-07-26T12:58:53","guid":{"rendered":"https:\/\/olduvai.ca\/?p=47420"},"modified":"2019-07-26T07:58:57","modified_gmt":"2019-07-26T12:58:57","slug":"subprime-2-0-mortgages-now-available-for-borrowers-without-credit-scores","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=47420","title":{"rendered":"Subprime 2.0: Mortgages Now Available For Borrowers Without Credit Scores"},"content":{"rendered":"\n

Subprime 2.0: Mortgages Now Available For Borrowers Without Credit Scores<\/a><\/h3>\n\n\n\n

Waterstone Mortgage Corporation, a national lender, based in Wisconsin with licenses in 48 states, announced Tuesday that it’s now lending to people with aboustely no credit history, reported HousingWire<\/a>.<\/p>\n\n\n\n

Waterstone calls it the “Non-Traditional Credit Program<\/em>” will use other forms of financial history, such as cell phone bills, rent, utilities, and insurance premiums when underwriting a borrower.<\/p>\n\n\n\n

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The Consumer Financial Protection Bureau (CFPB) estimates that about 26 million Americans have no credit score. The CFPB also states that an additional 19 million Americans have a limited or outdated credit history. This means that 18% of adults are “credit invisible,” said Waterstone in a statement.<\/p>\n\n\n\n

“While a credit score is certainly very useful for determining a homebuyer’s ability to pay their mortgage payment, other payment indicators\u2013such as bills that are consistently paid in full and on time\u2013can be extremely telling,” said Waterstone Mortgage SVP\u2013Investor Relations & Product Development Kim Newby.<\/p><\/blockquote>\n\n\n\n

The new program is available with conventional, FHA, USDA, or VA loan options, with the goal of helping those with no credit history into homes.<\/p>\n\n\n\n

“Of course, the Non-Traditional Credit Program is ideal for borrowers who only use cash, debit or personal checks on a regular basis. But it’s also designed for those who have had credit cards or loans in the past, but who haven’t utilized credit in more than two years,” Newby said.<\/p>

“Also, recent immigrants who haven’t yet established a credit score in the United States could benefit from this program, as well as young adults and recent college graduates who are just beginning to build their credit.”<\/p><\/blockquote>\n\n\n\n

Waterstone has debuted the new loan program at a time when a collapse in mortgage rates is failing to bring buyers back<\/a>.<\/p>\n\n\n\n