PAYMENT HISTORY

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  • #70688
    jkp2020
    Participant

    I’m currently renting in a condo, where all my utilities are included in my rent amount. How do I show consistent on time payment history outside of the traditional utilities? Can I use my cell phone bill, monthly parking statements, and car insurance statements instead? According to NACA, you need 12 months of consistent payment history from three different entities before being qualified for the NACA program.

    #70690
    Nelsont
    Member

    This is true. You need 3 forms of credit. Sometimes you’ll hear the term alternative credit thrown around. It’s just a fancy name for a revolving debt like the ones you mentioned. You will definitely need some if not all of them. Plan for all just incase. Being over prepared will set you up for the future. Being under prepared will delay qualification.

    It is possible to qualify even if you are not paying rent. However if you are paying rent and especially if your name is on the lease you will be required to document your rental history and have your landlord or leasing company fill out a verification of rental form and send it directly to naca without going through you as the middle man (government required process).

    There have been several members posting about your a situation like yours in the last year. You will need to provide a documented breakdown of charges otherwise the underwriters will never understand why you are overpaying rent every month and won’t get qualified until the landlord or leasing company can provide what they want. Ideally your leasing agreement will have charges broken out as well as a clause stating the charges are rolled into rent and your monthly obligation is the total.

    #70692
    jkp2020
    Participant

    Thank you for your speedy response, Nelson. Yes, I read my leasing agreement over earlier and it does states that all utilities are included in the rental rate.

    Another question — I’ve been renting at my current spot for 5 years, and my landlord and I only signed a leasing agreement once back in 2015. He has never told me to renew my lease annually. He has good faith because of how long I’ve been renting from him, but will not having an up to date lease signed since 2015 be ok in my case? I know it’s not uncommon when you have landlords, but I just want to be sure. I’m sure he doesn’t mind verifying any information NACA may have.

    #70695
    Nelsont
    Member

    I am not sure. You might need to have a lease written up. Your MC will have the best advice.

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