Is it a problem if I don’t have a strong credit history? Do I need a specific number of accounts in my credit profile to qualify for a mortgage?

A strong credit history is always helpful when applying for a home mortgage loan. The strength of your credit profile is based upon many things — one of the most notable of which involves your credit history in terms of number of accounts you have and for how long you’ve had them.

A borrower with a weak credit history with little to no accounts will inevitably have a harder time getting approved for a mortgage. The number of accounts you will need to qualify for a loan ultimately depends on the mortgage product. See below:

• Fannie Mae (Conventional): Fannie Mae’s Desktop Underwriter (DU) requires no minimum number of accounts in order to qualify. (Note: A lender may have their own requirements relating to number of accounts)
• Freddie Mac (Conventional): Freddie Mac’s Loan Prospector (LP) requires at least 3 accounts on the borrower’s credit report but does not require all of them to be open and active. It’s also important to note that LP does not specifically call for a minimum number of months needed for the 3 accounts, rather you only must have at least 3 accounts in the credit history.
• FHA: No specific number of accounts, but generally 3 accounts that are open and active with 12 months of history.
• USDA: No specific number of accounts, but generally 3 accounts that are open and active with 12 months of history.
• VA: No specific number of accounts, but generally 3 accounts that are open and active with 12 months of history.

To learn more tips and advice on how to strengthen your credit before buying a home, read this blog post: How to Repair Poor Credit Before Securing a Home Loan.