Is it possible to get a Mortgage with No Credit Scores?

Is it possible to get a mortgage with no credit scores? The answer is, yes! As a matter of fact we closed an FHA loan yesterday where neither borrower had any credit scores. So, what does the lender want to see if the borrower has no credit scores? The borrower needs to show 3 alternative credit sources for the past 12 months. At least 1 credit source has to come from the following group:

Group I

1) Rental/housing payments. Verification of rental must be completed by a Management Company. If the borrower rents from an individual, 12 months cancelled checks are required.

2) 12 month Utility Company Reference (gas, electricity, water, land-line telephone, cable tv).

nocredit_optIf the borrower does not have 3 credit references from the above list (has to have at least 1 from the above list to qualify) then the borrower can use references from the below list to fill out the other 2 references:

Group II
1) Insurance (Medical, Auto, Life, Renter). Cannot be included if payroll
2) Child Care Providers (School Tuition, Daycare). Must be made to a business.
3) Retail Stores (Department, Rent-to-Own).
4) Internet/Cell Phone services.
5) Medical Bills not covered by insurance.
6) Savings History (Must document a full twelve month history of regular
deposits at least quarterly, non-payroll deducted and no NSF checks
allowed that results in an increasing balance to the account).
7) Auto Leases
8) Personal loan from an individual with repayment terms in writing and
supported by cancelled checks to document the payments.
Three additional parameters must be met:
1) No history of delinquency on rental housing payments.
2) No more than one 30 day delinquency on payments due to other creditors.
3) No collection accounts/court records (other than medical) filed within the past 12 months.


Filed under Credit

6 responses to “Is it possible to get a Mortgage with No Credit Scores?

  1. Philip,
    Great information! Thank you for sharing. I’m going to keep this for reference.

  2. peg gilliland

    This is great news – especially for overseas hires with no US credit!

    *Peg Gilliland | 434-242-1470 | Charlottesville Solutions *

    ASSOCIATE BROKER and Licensed to sell Real Estate in the Commonwealth of Virginia

    On Tue, Nov 26, 2013 at 10:42 AM, philipmahone

  3. David

    I am a fan of Dave Ramsey’s Baby Steps and Debt free lifestyle, and I’ve been asked if it is possible to get a mortgage without a credit score multiple times, and I’ve always said yes it is, but Dave’s solution is simply find one that is willing to do the actual work required.
    Thank you for providing the “shopping list” that is needed to make it happen!

  4. Angie

    What if you are repairing your credit and have all of those things? I have not had any problems within the past 3-4 years. Everything on my credit report is old. Could I use the no score method to get a mortgage loan?

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