This question comes up quite often — and surprisingly is a make-or-break factor for a borrower when looking to get approved for a mortgage loan.
When it comes to first time home buyers borrowers applying for conventional loans, the answer is typically no. This is because these borrowers have shown a strong enough credit profile to qualify for conventional financing and therefore don’t have to jump through as many hoops.
Unconventional loans, however, are a bit more stringent. If you’re a first time home buyer applying for unconventional financing who has been paying rent for the last few years, you’ll want to have some proof of those rent payments to show to underwriters. This is why it’s not recommended you pay your rent with cash or money orders.
If you’ve been living at home for the past several years without paying rent, and you want to qualify for an unconventional mortgage, you’ll likely have a much harder time getting approved — especially if you have no money in savings and poor credit.
Ultimately, the requirements depend upon the mortgage product. See below:
To learn more about specific mortgage requirements, be sure to speak with an experienced mortgage broker.