Can I Get a Mortgage Without a Credit Score?

Can I Get a Mortgage Without a Credit Score?

September 18th, 2019 | Preapproval, Purchasing a Home, Credit

You need a good credit score to get the best rates on mortgage loans. Less-than-perfect scores will mean higher interest rates and subprime credit scores will make borrowing money very expensive. But what if you have no credit score at all? Is it possible to get a mortgage without a credit score? 

The Credit Score-free Population

According to the Consumer Financial Protection Bureau (CFPB), there are approximately 26 million American adults without a credit history and another 19 million whose credit histories are too outdated or limited to be scored with the traditional methods by the credit bureaus.  That accounts for 18% of the U.S. adult population. 

Some of those without credit scores are recent immigrants who have not yet established credit in the U.S. Others have chosen to use cash for purchases, instead of credit cards and other loans. Still others are the younger and have not had enough experience with credit to have a score. And some people may have open credit card accounts but have not used them for so long, that there is no longer any relevant data to score. Whatever your reason for not having a credit score, there may still be ways for you to qualify for a mortgage.

Qualifying without a Score

If you have a nontraditional credit history, you still may be able to qualify for an FHA home loan. This government-backed mortgage program allows lenders to use other documentation to verify your creditworthiness. 

You will need to provide at least 12 months’ worth of payment information for rental payments. In addition, you should provide as much documentation as you can on things like your monthly utility payments and car or renter insurance. You could also include payment history for your cell phone bills, internet/cable bills, school tuition, or childcare payments. 

In order to be seriously considered, all these accounts need to show that you have been consistently on time with your payments and that you are not in collections for any debt.  Lenders will also look closely at your debt-to-income ratio. Your debt should definitely be lower than 50% of your income. The lower the better. You will also be required to have enough cash reserves on hand so that after you close on your mortgage, you will still be able to pay for one month of mortgage payment in addition to your other expenses.

Finding the Right Lender

Even if you have a stellar nontraditional credit history, not all lenders will be willing to work with you. Processing all that paperwork requires manual underwriting and some lenders will not consider it worth the effort.

While it may require a little more work, if you have a history of timely payments, you may still be able to obtain a home loan. Coupled with little or no debt and a good pile of savings, you can show lenders that you are a responsible borrower, ready to take on a mortgage.

Call us today at 510-339-2121 to discuss all of the mortgage options that are available to you.


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Holmgren and Associates

DBA of Finance of America
4200 Broadway
Oakland, California 94611
Phone: 510-339-2121
NMLS 0910184/1071

Holmgren & Associates is a branch of Finance of America. We are a full service mortgage banker with an experienced staff offering expertise in residential mortgage lending, with primary focus on loans for home purchase, refinance, and reverse mortgages.

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©2019 Holmgren & Associates is a division of Finance of America Mortgage LLC |Equal Housing Opportunity | NMLS ID #1071 (| 300 Welsh Road, Building 5, Horsham, PA 19044 | (800) 355-5698 | Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act
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This is not a commitment to lend. Prices, guidelines and minimum requirements are subject to change without notice. Some products may not be available in all states.  Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision.  Any materials were not provided by HUD or FHA. It has not been approved by FHA or any Government Agency.  A preapproval is not a loan approval, rate lock, guarantee or commitment to lend. An underwriter must review and approve a complete loan application after you are preapproved in order to obtain financing.  Questions, comments, concerns? Send to