Your credit history and credit score are among the top factors lenders consider when they approve a mortgage. This can make it challenging to buy a home for those who don’t have a credit history. Plus, if you’ve never borrowed or used credit cards, your credit score may have little to no information at all.
The good news is, you don’t have to worry about not having an extensive credit history when you shop around for your first home. Here are ways to buy a house without a credit history and still have a chance at mortgage approval.
A co-signer is someone who doesn’t live with you, such as a parent or relative, and is willing to get a loan with you and assume responsibility if you can’t make payments. Choosing a co-signer with good credit gives you a better chance at getting your loan approved even if your credit is low or non-existent.
An FHA loan is backed by the Federal Housing Administration and is popular for helping people buy a new home even if they have no credit history. The program helps many first-time homebuyers by instructing lenders not to turn away borrowers who don’t have credit scores and look at all aspects of their mortgage application.
There are mortgage lenders who are more flexible when it comes to credit history and are willing to accept loans with little to no credit history. Your loan advisor can guide you and connect you if you choose to go this route.
Under normal circumstances, underwriting involves pulling your credit history to prove your creditworthiness. Since you have little to no credit history, you can ask your lender for a manual underwriting process which makes them go through your financial documents such as proof of on-time payments with your landlord, utility companies, insurance companies, and others as evidence of financial responsibility.
If you can put down or save up for a large down payment, you may have the leverage you need to close the loan. Lenders may choose to overlook little to no credit history for someone who can make at least 20% down.
Don’t let good credit scores and long credit history requirements stop you from buying your dream home. There are plenty of ways to get a mortgage with no credit.
Get in touch with our loan experts to help you decide which type of mortgage fits your requirements.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 1299512
111 N. Belcher Rd Suite 203A
CLEARWATER, FL 33765
Phone: (727) 388-5235
Foxx and Associates LLC strives to ensure that its services are accessible to people with disabilities. Foxx and Associates LLC has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Foxx and Associates LLC makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows foxxmortgage.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
Foxx and Associates LLC accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Foxx and Associates LLC continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Foxx and Associates LLC website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Foxx and Associates LLC website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: firstname.lastname@example.org