I've never built credit but inherited enough for down payment. Can i qualify for FHA loan?

FHA will allow for "Alternative Credit" to be used in determining eligibility.. search for a local mortgage broker in your area, and apply with them.. they should be able to look at your complete scenario and determine which alternative credit can be used.. the local bank will probably be no help to you since they usually don't go "Outside the box" so to speak.. Brokers have access to numerous lenders and they are experienced in seeking out the best loan terms for your particular situation.. a borrower with no credit references is not a very popular loan, so you need to use someone who has access to numerous lending programs, not just one.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Depending on the area you want to live, the USDA program allows alternative credit as described below. Please shop around as all lenders are not created equally and programs, guidelines, etc. can vary greatly lender to lender. Good luck!

It's possible, but not every lender will do this so you'll need to shop around for one that will. Alternative credit will need to be established so you'll need to document you've paid (on time) on 3 accounts over the past 12 mo. i.e. utilities, cell phone, car insurance, etc. It would also be helpful if you have been paying rent. Speak with a LOCAL loan officer from this forum for the best results. Thanks and good luck!

Charlie has given you correct advice. Follow his instructions and you should be okay.

You will need to establish "Alternative Credit" as described below by Charlie.

Williams answer is spot on.

FHA allows for a no credit score, but build credit with "alternative credit". Very few FHA lenders will allow for the alternative credit option these days, but it is available. You need to document and prove payments to things that normally wouldn't show up on a credit report, yet you actually pay. Items like utilities (gas, electric, phone), rent, car insurance, etc. all work well for building alternative credit.