Good News for Potential Co-op Buyers with Little to No Credit

April 14, 2015 — Buying a co-op apartment in New York City can be daunting. Potential co-op buyers have to pass muster with the building's board of directors, wrap their heads around the admissions package, prepare for an admissions interview — and then there's the bank. Getting approved for a mortgage is formidable enough. But when you have a craptastic or nonexistent credit score, you may as well fuggedaboutit — which is a shame considering that co-ops and condos are starting to hit the market in still-kind-of-affordable neighborhoods like the South Bronx. It's also a shame because a low credit score is not always indicative of fiscal irresponsibility. As Brickunderground points out, it can simply mean that a person has chosen not to use credit cards (it happens!) or they can't get them because of bankruptcy or foreclosure. These are people who pay their other bills on time. We're talking cell phone, cable, phone, and gas and electric bill payment history. Surely, that should count for something, right? Well, now it does. The Wall Street Journal has reported that "Fair Isaac Corporation (FICO), the credit score system used most often for mortgages, has announced a new credit score based on other financial data, such as cell phone, cable, phone, gas, and electric bill payment history." This ray of hope has the potential to be a game-changer for those who keep up with their bills for at least six months. "In New York City," adds Brickunderground, "Fannie Mae will entertain scores as low as 620, as long as the loan is no more than $417,000. For higher loans, you'll generally need a FICO credit score between 680 and 700 to qualify for a mortgage."