There are a lot of mortgage solutions aimed at borrowers who do not have perfect credit. But what if you do not have any credit at all? Is it’s still possible to buy a home? It may surprise you to learn that the answer is “yes.” There are a number of reasons you might not have a credit score. Perhaps you are an undocumented immigrant. Or maybe you are a US citizen, but you just have never established credit. Not having a credit score does not mean you cannot afford a home, nor does it mean you will not keep up with your payments. That is why we offer “no credit score” FHA financing.
How to Qualify for an FHA Mortgage with No Credit
To find out if you are eligible for “no credit score” FHA financing, we will need to look at 12 months of the following:
- Rent payments.
- Utilities bills.
- Phone bills.
For the utilities bills, you can use your payments for internet, television, electricity, water or gas.
There is no getting around the 12 months of rent payments, but if you do not have 12 months of phone or utilities bills, you might be able to use:
- Payments made for education (tuition).
- Childcare payments.
- Payments on a personal loan.
- Medical bill payments.
- Savings account cash deposits.
Whatever you end up using, note that it will have to be verifiable. That means, for instance, that if you have been living with your parents and paying them rent, unfortunately that will not be acceptable. But if you have been paying rent on a house or apartment, that would be acceptable.
If you pass the checks above, you will need to also have a 43% debt-to-income (DTI) ratio or better. Additionally, you will need to make a 3.50% down payment.
No Credit vs. Bad Credit
Keep in mind that this is a solution for borrowers with no credit score at all. If you simply have a low credit score, you will want to look into applying for a mortgage with easy credit qualifications like a regular FHA, USDA or VA loan. If your score is still too low to qualify, you will need to work on raising it first (we can help—ask us about our credit rescore service).
Buy a Home with No Credit Now
Having no credit score does not need to hold you back from your dreams of owning a home. McGowan Mortgages has helped homebuyers with no credit scores with a broad range of situations to successfully move into new homes with flexible mortgages. We can walk you through the process step-by-step, helping you gather the documentation you need to qualify for an FHA home loan. Are you ready to get started? To schedule your consult, please give us a call now at (816) 631-9687. We can help you buy a home with no credit in Missouri or 30 different states.
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