No Credit Required Home Loan

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Before you shame the mortgage industry please read on.  While reminiscent of the “anything goes” mortgage era, “No Credit Score Needed Mortgage” is not a free pass to those with a pulse.

First of all, a home loan option for those without credit scores exists.  However, no credit score requirement is not the same as no qualification requirements.  In fact, no credit score required does not even mean that credit history review is wavied (see below for more).  

The no credit score requirement home loan simply means…no credit score is required.  After-all, regulations such as Dodd Frank and TRID require prudent and responsible underwriting by all mortgage lenders.

Lenders would seal their fate offering reckless products like the “No Income No Asset” loans of the early to mid 2000’s.  Instead, the No Credit Score home loan allows consumers that have no credit scores to finance a new home.  The difference is that this product allows mortgage lenders to responsibly qualifying the borrower for a home loan they can afford and pay back.

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No Credit Score Home Loan Basics

There is a saying, “no credit is better than bad credit.”  While this is true, why would someone not have a credit score?  Several reasons cause consumer’s to be Credit score-less.  For example:

  • Choose to live a debt free life
  • Being fresh out of college
  • Choose to stop using credit after a bankruptcy

Documenting creditworthiness when you have no credit scores is simpler than you think.  All that no credit score borrowers must do is verify 12 months of timely payments on 2 debts.  2 debts that do not report to their credit report.  For example:

  • Rent
  • Car insurance
  • Cell phone bill
  • Gym membership
  • and many more

Proof of timely payments on 2 debts over 12 months is key for someone without a credit score applying for a new home loan.   After-all, these 2 debts fill the void created due to the borrower having no traditional credit.  Mortgage Lenders consider this alternative credit.f

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All Other Mortgage Rules Apply

The No Credit Score Required feature is a detour around the missing credit score pothole.  However, borrowers without a credit score are subject to standard employment, income, debt to income and asset requirements.

By Jeremy House


One comment

  1. I really do like that you can still get a home without credit. Often, I think that a lot of people don’t understand that is possible. However, if you have the money, most companies will work with you. Do you have any other tips about getting a home without credit?

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