A borrower with a solid work history and strong assets, but no credit score, can still qualify for a no credit score mortgage loan as a conventional mortgage option. By documenting alternative credit—such as rent payments or other recurring monthly bills—we can qualify them for up to 90% LTV.
You can view Fannie Mae’s official guidelines for loans where the borrower does not have a credit score.
For a borrower with a solid work history and strong savings, but who doesn’t use traditional credit—such as car loans or credit cards—a no credit score mortgage loan can still make it possible to qualify for a conforming loan with competitive rates and fees. If we can find a way to document rent payments—whether through an app, canceled checks, money orders, or even an ACH transfer from a bank account—we can ask the credit bureau to add that to the credit report. We can do the same with another recurring monthly bill, such as car insurance, a utility, or even a mobile phone. Once these are added to the credit report, they become “alternative credit,” and the underwriter will accept them.
If we can show on-time rent payments—via bank statements or a rent verification—and one other monthly liability paid for at least 12 months, such as a utility or insurance bill, these can be added to the credit report as “alternative credit” to help qualify for a no credit score mortgage loan, even without any traditional credit history.
Learn more about how a credit score actually works.
Not every lender knows exactly how to use this program. Many times, a borrower without a credit score will simply be denied.
At Barrett Financial, we have the experience and know-how to successfully navigate the no credit score mortgage loan process. With this approach, we have the tools to say yes when others say no.
Besides the experience we bring to the table at Barrett, with us you’re working with real people who live and work right here in Central Ohio. We have a physical office in the Gahanna area, and we’re proud to be part of this community. When you call us, you’re not dialing into a huge call center where you speak to someone new every time—someone who may not even know where your file stands. You’ll work with a small, consistent team that’s focused on your loan and ready to answer your questions at every step.
Prefer a personal connection? Call or visit our office to work directly with our experienced team. With our technology and expertise, we make the process fast, easy, and efficient—often wrapping things up in just a couple of weeks.
