FHA - underwriter/LO needs credit reference.

I have been qualified for an FHA. Now, the underwriter needs credit reference letters from companies that could prove I have no bad payment history (utilities, phone bills, insurance, etc) and have never been delinquent.

They said a letter from apartment landlord is one that they would accept. But I remember that there was a month that I underpaid the rent for $12.50 due to a pet-ownership rate change that I didn't catch. Will that twelve dollars affect my application, especially that FHA and the underwriter is strict when they said "no delinquency" is allowed.

Also, AT&T is my phone and cable service provider. I called their customer service 800-number and none of them seem to know what I am talking about when I said I need a Letter of Credit Reference. Hmmm...is this letter even a familiar scenario to service providers? I'm stuck and don't know how to proceed because I need to come up with three letters from three different providers (rent is one).

2 Answers

Hi Martin, It appears your credit report has few/no tradelines present, so your lender is documenting "soft" tradelines, which are regular bills you pay that don't report on credit. The $12 shouldn't be an issue, presuming your landlord doesn't state the rent was late. You might try asking for payment histories, rather than Letter of Credit Reference, or just mention that you are buying a home and need to document your timely payment history. Hopefully that will solve any miscommunication.

You can also try providing paid utility bills, paid bills for school tuition or childcare, or paid bills for various kinds of insurance, such as health insurance, life insurance, or personal property or auto insurance. The more letters you get showing that you pay your bills on time, the more likely it is your application will be approved.