Many people use a "cash-only" policy, and therefore end up having no way to
prove their creditworthiness. If you have no credit, there are other ways to prove
your creditworthiness. In fact, you probably have more credit than you think.

You can use the following references to prove you have credit:

• Rent: This one of the strongest references when buying a home.

• Utilities: You can use the statements as evidence, and many utility companies
will issue credit letters.

• Short-Term Notes: Many of the 30-, 60-, or 90-day personal note carriers will
issue a credit reference.

• Rental agencies: The furniture and appliance rental companies will also issue
credit letters.

• Car references: Many car lots have their own loan papers, and although they do
not report to credit bureaus, they will probably be happy to help you.

The amount you choose to finance is a personal choice. Each state has different
homestead laws. You may not be able to borrow against your property later for things
such as a college education. It's a good idea to read more about these laws before
you make a down payment decision.

As a general rule of thumb, you should not exceed 28 to 29 percent of your gross
income for your total house payment, and 36 to 41 percent of your gross income
for all your fixed monthly obligations, including house payments.

The most important factor is your own comfort level. The best thing is to contact
your lender and ask for an estimate several ways.