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.

When you are ready to take the next big step of your life journey and buy a home, you might not yet be able to afford a 20% down payment.

While many prospective homebuyers believe that means they cannot purchase a home, that is simply untrue. People buy homes every day without making a 20% down payment.

If you are in this scenario, here is what you can do to proceed with your home purchase plans rather than waiting to buy a home.

4 Tips on How to Proceed If You’re Unable to Put 20% Down

1. Look for ways to save up for your down payment. There are a few options for saving up toward your down payment if you still have a bit of time left:
   • Check your budget to see if you can cut expenses, then set the money aside.
   • Set aside any random windfalls (i.e. bonuses).
   • Ask for gift money (always document it).
   • Every little bit helps.
2. Consider applying for a mortgage with a low down payment. There are mortgages that do not require 20% down. In fact, it might surprise you to hear this, but if you have a high credit score, you may even be able to get a low down payment with a conventional loan. Another option is an FHA mortgage. This government-backed product has easy credit qualifications and affordable rates along with a low down payment.
3. Check if you qualify for a mortgage with no down payment. A couple of other government-backed loan products make it possible to buy a home without a down payment. These include VA mortgages backed by the Department of Veterans Affairs and USDA mortgages backed by the US Department of Agriculture. You may qualify for a VA loan if you are a veteran, active-duty service member or eligible surviving spouse who meets certain requirements. To qualify for a USDA loan, you must purchase a home in a rural area.
4. Apply for down payment assistance. Finally, there are down payment assistance programs available in many different states and cities. Through these programs, you may be eligible for a loan to help with your down payment and closing costs.

We Can Help You Buy a Home in Missouri or Beyond

McGowan Mortgages works with many homebuyers who cannot put 20% down on a home.

We can help you figure out if you qualify for a mortgage with a low down payment or no down payment, and can point you in the direction of down payment assistance programs in your area.

To get started, please give us a call at (816) 631-9687. We can help you buy a home quickly and easily in Missouri or 30 different states.