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Loan Options for a No Credit Score Home Loan

Just because you don’t have a credit score doesn’t mean you don’t qualify for a home loan—it just means your loan options are a little different. While there are special rules and regulations required when applying for a home loan with no credit score, you’ll still need to prepare documents to make sure a no-score loan is the right loan for you. Take note—there’s a big difference between no credit score and a low credit score. 

Conventional No Credit Score Loan 

A conventional loan is not secured by a government agency, making it a little trickier to qualify if you don’t have a credit score. Requirements for a conventional loan with no credit score means you need at least 12 months of flawless payment history on eligible monthly bills, and you may also need to take a homeownership education class. If you do qualify for a conventional loan the benefits far outweigh the effort needed to qualify!

A few benefits of a conventional loan:

  • No Private Mortgage Insurance (PMI) on loans with 20% or more down payment
  • Typically, lower interest rates
  • Flexibility in loan terms (15-year or lower mortgage terms, meaning you pay off the loan faster)

FHA No Credit Score Loan

An FHA (Federal Housing Administration) loan is a great option for individuals with no credit history. It gives you the ability to take advantage of benefits not available through other mortgage options. The FHA insures these loans to assist more individuals with non-traditional credit histories.

A few benefits of an FHA loan:

  • Secured by the FHA, making it a little easier to qualify
  • Competitive interest rates
  • Lower down payment requirements and fees

VA No Credit Score Loan

The VA loan is a benefit awarded to the brave men and women who serve this country. If you’re currently any of the following, you may qualify for a VA loan:

  • Service member on active duty
  • A veteran who has served a minimum period
  • Reservist
  • Member of the National Guard
  • Surviving spouse of a deceased veteran

Service members who are debt-free and have no credit score are usually successful in qualifying for a mortgage through the manual underwriting process.

A few benefits of a VA loan:

  • No mortgage insurance
  • No down payment
  • Very few fees

Interested in learning more about any of these loan programs? Find out how to get into a new home with a smarter mortgage that supports your debt-free lifestyle.