South Florida real estate may currently be going through slow times but once alternative credit scoring is more widely used; many first time buyers who haven’t achieved affordable interest rates due to lack of credit will be able to prove regular bill payment and achieve better scores, thus offered better rates.
According to Fair Isaac who developed the FICO score approximately 50 million Americans are considered difficult to score because they have little or no information on file at the national bureaus. This is the main reason many potential first time buyers are discouraged.
Thankfully an increasing number of mortgage brokers and lenders are starting to offer more scoring options. Anthem is one of the alternatives.
Developed by First American CREDCO, credit data subsidiary of First American Corp., the Anthem system uses a scoring method which combines information from the files of national bureaus such as Equifax, Experian, and TransUnion, with information gathered by CREDCO from sources such as telephone, electricity, and other utility payments, as well as rent, payday lenders, and small local retailers.
Anthem is only one of the many systems being used today to help what is commonly referred to as “thin file” loan applicants.
Potential buyers looking at real estate in South Florida experiencing difficulty providing credit history should ask for scoring alternatives as a way to maximize their chances of purchasing property with the best possible loan options.
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