Can you get a mortgage with no credit?

Can you get a mortgage with no credit?

Can you get a mortgage with no credit? If you want to buy a home but have a limited or nonexistent credit history, it can be difficult. You need to find a mortgage lender who will accept your application. Most lenders need applicants to have some sort of credit established. This can be through car loans, student loans, or such like.
Yet, FHA loans allow you to buy property without the need of having to show your credit score. You can use “non-traditional forms of credit”. For example, this can be proof of your rent payments, to apply for an FHA loan. For first time home buyers, finding a mortgage lender willing to get you in a home is no problem.
But, that’s because they need you to have a good credit score. Additionally, having good finances before you can get approved for a home loan is better. This may not be challenging to most. There are individuals who have a limited or completely empty credit profile. If you’re one of those people, the good news is that you can still buy a home with an affordable interest rate. Even with a low down payment. So, to get a mortgage without any prior credit history, you will have to apply for an FHA loan.
FHA loans are the best option for anyone interested in buying a home the first time but don’t have the credit to do so.
If you want to learn more about FHA loans, continue reading to find out all the critical details you need to know.

Is it possible to get a mortgage without credit?

Most lenders require that you show some proof of credit history when applying for a home for the first time. But, with FHA loans, you can get approved for a home. Show receipts that you’ve paid your rent on time or any other valid proof. Substantiate your claims of being financially responsible.
Keep in mind; even FHA loans have specific requirements. You must meet these to be eligible to receive the benefits of this specific loan type. For most standard mortgages, you must have a credit score of at least 600 or higher to qualify for financing. With an FHA loan, you need to show proof that you’ve paid your utility bills on time to qualify.
Here are some of the documents you can use to apply for and get approved for an FHA loan:
  • Car insurance payments
  • Rental payments
  • Utility payments
As long as you have one or a combination of these documents, you will be able to qualify for approval for an FHA loan. You can apply without needing an actual credit score.
How to get a mortgage with no credit
As we mentioned above, the only real way to get a mortgage without any credit is by using an FHA loan. When applying for an FHA loan there’s a rule. You must pay a monthly insurance premium alongside your mortgage payments.
Your monthly insurance premium rate will typically be in the .80%-1.05% range. Private mortgage insurance comes with conventional loan types. The MIP is no longer applicable once you reach 22% equity in your property. With FHA loans, your monthly insurance premium is mandatory for the entire life of the loan.
FHA loans also come with a minimum down payment requirements of 3.5%. Usually, traditional mortgages have a 5% down payment.

People Also Ask

Q: How can I get a home loan with no credit?

A: If you don’t have a strong credit profile but are interested in owning a home, you need to look into what is known as FHA mortgages. FHA mortgages are loans backed by the Federal Housing Administration, and they allow applicants to use non-traditional credit histories to apply for mortgage loans. An example of non-traditional credit history would be proof of non-delinquent renter’s payments.

Q: Do you have to have credit to get a mortgage?

A: While most lenders do require you to have some sort of verifiable credit history before applying for a loan, there are options available to people who may have a limited credit history or no credit at all.

Q: Can I buy a home with 0% down?

A: Yea, there are first time home buyers programs out there which enable you to purchase a home without paying any money at closing outside the traditional closing costs. There are other programs out there that offer deals for as little as 3% down on your home for qualified buyers.


We give you all of the important tips, facts, and information you need to know about trying to obtain a mortgage with no credit. Use this write-up to assist in applying for a home with no credit so that you can skip the hassle involved in applying for a traditional loan.

You may also find the First Time Home Buyers page helpful.


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