Edited and reviewed by CEO Vatche Saatdjian — 30+ years of experience — Expert on FHA loans
FHA manual underwriting approves buyers with no credit score, thin credit files, or non-traditional credit. If you've been paying rent, utilities, and bills on time—there's a path forward in Nevada.
Nevada Licensed • NMLS #65506 • Manual Underwriting Experts Since 1995
Manual underwriting is a process where human underwriters evaluate your creditworthiness using alternative documentation instead of relying solely on credit scores.
Requires credit score from all three bureaus (Experian, TransUnion, Equifax). If you have no credit history or non-traditional credit, automated systems automatically deny your application.
Human underwriter reviews alternative credit documentation: rent payments, utility bills, insurance payments, phone bills. Evaluates your actual payment history and financial stability instead of relying on credit scores.
Young Nevada buyers who've responsibly paid rent, utilities, and bills but haven't built traditional credit yet.
Recent arrivals to the U.S. with limited U.S. credit history but strong payment records in home countries.
Nevada residents recovering from past financial hardship who've established 12+ months of perfect payment history.
People who prefer cash transactions and have thin credit files despite solid financial management.
College graduates with stable income but limited credit history beyond student loans.
Nevada small business owners with irregular income patterns who don't rely on traditional credit.
To qualify for manual underwriting in Nevada, you'll need to meet specific FHA guidelines and provide alternative credit documentation.
Minimum 3.5% down payment with valid source documentation (savings, gift funds, grants)
Maximum 43% DTI (stricter than automated underwriting's 50%+ allowance)
2+ years employment history in same field with steady/increasing income
1-3 months PITI reserves (Principal, Interest, Taxes, Insurance) in savings
Property must be your primary residence (Nevada owner-occupancy required)
2+ years since Chapter 7 discharge, 1+ year Chapter 13 with payment plan
You must provide 12-24 months of on-time payment history for at least 3-4 of these tradelines:
12 months canceled checks/bank statements OR landlord verification letter (most important tradeline)
Electric, gas, water - 12 months statements showing on-time payments (Nevada: NV Energy, Southwest Gas)
Cell phone, landline, cable/internet - 12 months billing history
Auto insurance, renters insurance - 12 months payment records
If not on credit report, provide lender statements (can count as tradeline)
Daycare, storage units, gym memberships - if recurring monthly obligations
These factors can offset limited credit history and improve your approval odds with Nevada FHA manual underwriting:
5-10%+ down payment shows financial discipline and reduces lender risk
6+ months cash reserves demonstrate ability to handle financial emergencies
DTI below 31% shows strong payment capacity with room for financial cushion
5+ years same employer or industry with consistent/increasing income
New mortgage payment similar to current rent reduces payment shock risk
24+ months perfect alternative credit with zero late payments
Free consultation • No obligation • Fast pre-approval
Here's exactly how the manual underwriting approval process works for Nevada homebuyers, from application to closing.
Discuss your situation with our Nevada FHA specialist. We'll determine if manual underwriting is the right path and explain documentation requirements.
Collect 12-24 months of alternative credit tradelines: rent receipts, utility bills, insurance statements, phone bills. Also gather income documents and bank statements.
Complete FHA loan application with manual underwriting designation. We submit comprehensive documentation package including alternative credit verification to underwriting.
Experienced underwriter manually evaluates your payment history, income stability, DTI ratio, and compensating factors. May request additional verification or clarifications.
Respond to any underwriting conditions or document requests. Common requests: additional bank statements, employer verification, explanation letters for deposits.
Receive "Clear to Close" approval! Schedule closing date with title company, conduct final walkthrough, sign documents, and receive keys to your Nevada home.
Follow these Nevada FHA specialist recommendations to expedite your manual underwriting process:
Begin gathering tradeline documentation 2-3 months before applying. Contact utility companies, landlords, and insurance providers for statements now.
Label all documents clearly (Rent_Jan2024, NVEnergy_Feb2024). Create a spreadsheet tracking every tradeline with 12-month payment dates.
Don't apply for any new credit cards, auto loans, or financing during the process. Even inquiries can raise red flags with underwriters.
When underwriter requests additional documents, provide them within 24-48 hours. Quick responses = faster closing.
Keep consistent account balances. Large deposits require sourcing - avoid moving money between accounts unnecessarily.
Not all Nevada lenders understand manual underwriting nuances. Partner with specialists experienced in alternative credit approvals.
Detailed guide on what documentation underwriters need for each type of alternative credit tradeline to verify your payment history.
Nevada Tip: If renting from individual landlord, have them sign a VOM (Verification of Mortgage/Rent) form available from your loan officer. Include landlord's phone/email for underwriter verification.
Pro Tip: Call NV Energy at (702) 402-5555 (Vegas) or (775) 834-4100 (Reno) to request 12-month payment history letter. Usually provided free within 3-5 business days.
Important: Pre-paid phone plans (TracFone, Boost Mobile) are harder to document. Postpaid accounts (monthly billing) are much better for underwriting purposes.
Nevada Tip: Contact your insurance agent to provide a "payment history letter" on company letterhead. Most agents familiar with mortgage requirements will provide this immediately.
Our Nevada FHA specialists will review your documentation and ensure it meets underwriting standards
Answers to the most common questions Nevada homebuyers ask about manual underwriting and alternative credit.
Our Nevada FHA specialists provide free consultations to evaluate your situation and explain your options.