[Logo: Federal Housing Administration] [Federal Housing Administration]
FHA Home | Events | Wikipedia | Site Map | Espanol
About FHA | Contact Us | Comments | A-Z Index

  

1-800-CALL-FHA (225-5342) Insuring More Than 34 Million Mortgages Since 1934

Skip Navigation

7. Non-Traditional Credit Report (NTMCR) Requirements

Change Date

March 10, 2010


Back to top

1.7.ff. Guidelines for Determining That a Borrower Has Sufficient Credit References

In order to determine that a borrower has sufficient credit references to be able to evaluate bill paying habits, the credit history must


  • include three credit references, including at least one from Group I (below), and
  • exhaust all Group I references prior to considering Group II for eligibility purposes (as Group I is considered more indicative of a borrower's future housing payment performance).

The table below lists the Group I and Group II categories of credit references that can be used for determining if a borrower has a sufficient credit history.

Group Number Types of Credit References

Group I
  • Rental housing payments (subject to independent verification if the borrower is a renter),
  • Utility company reference (if not included in the rental housing payment), including
    • gas
    • electricity
    • water
    • land-line home telephone service, and
    • cable TV.

Note: If the borrower is renting from a family member, request independent documents to prove regularity of payments, such as cancelled checks.

Group II
  • Insurance premiums (for example, medical, auto, life, renter's insurance (not payroll deducted)
  • payment to child care providers - made to a business providing such services
  • school tuition
  • retail stores - department, furniture, appliance stores, specialty stores
  • rent to own - (for example, furniture, appliances)
  • payment of that part of medical bills not covered by insurance
  • Internet/cell phone services
  • a documented 12 month history of saving by regular deposits (at least quarterly/non-payroll deducted/no NSF checks reflected), resulting in an increasing balance to the account
  • automobile leases, or
  • a personal loan from an individual with repayment terms in writing and supported by cancelled checks to document the payments.

Note: Borrowers with no Group I trade references must be underwritten using the criteria set forth in

Bookmark Get Help Back to top