I have friends who make well over 6 figures and have applied for housing loans a few years back when the market was booming and couldnt get financed simply because of lack of credit history. They wanna see on paper that you can re pay the debt. They dont care if you make millions if you cant keep track of a 500 limit card you definitely cant handle a 150k dollar house.

You have to look at it from the lenders stand point. If you wanted me to loan you 150k for a house but said i have no credit history i wouldnt approve you unless you had a substantial down payment. Even with no debt that just means youve yet to enter the credit market. Meaning you dont know how hard it is to stay on track. And you may handle it well and pay me back but its highly unlikely. Its just to big of a first step.

Now if you had good credit with years of stable credit history id approve you without thinking twice simply because youll do whatever you have to do to make the payment and im more likely to get my money back.


No offense but saying your friend is a loan writer for wachovia isnt saying much. They helped get the market where its at. why do you think they got bought out.