No Credit Score? You Can Still Qualify for a Mortgage
You can still qualify for a mortgage without a credit score.
If you are a borrower who doesn’t use traditional credit but have exemplary payment history with rent and other non-reporting creditors, which can include Utilities, insurance carriers, and phone bills as well as a host of other verifiable creditors. Then you can use your nontraditional credit to qualify for a mortgage. It’s important to know that lenders still consider any derogatory credit references that appear on the credit report: -There cannot be any 30-day lates on rental payments within the past 12 months. -Just one other account can have a 30-day delinquency in the past 12 months. -No collections (other than medical collections) or judgments in the past 24 months. -Judgments, liens, collections, and charge-offs of non-mortgage accounts must be satisfied in accordance with guidelines. -The property must be a one-unit, principal residence, and all borrowers must occupy the property. -All property types are permitted, but NO mobile homes. -Must be a purchase or limited cash-out refinance. -The loan amount must meet the conforming loan limits -Must be a fixed-rate mortgage with Down payment of 10% or more. -Income to debt ratios can’t be more than 40%. -Reserves may be required. Finally, there’s a program that allows prudent borrowers who hate being in debt to get a mortgage without having to build traditional credit history to show a credit score.