No Credit Score? No Problem!

Getting a mortgage loan without a credit score can be downright tough – but our team is committed to making this process as easy as possible! While most mortgage lenders don’t offer loans without a credit score, Churchill Mortgage accommodates this type of loan on a regular basis with expertise.

We work hard to make sure responsible people aren’t penalized for non-traditional credit. If you’re a Dave Ramsey listener you know that Dave hasn’t had a credit score for a long time, and is doing just fine. His plan of getting out of debt works.  At Churchill, we believe every customer deserves the real American dream of debt-free homeownership as well. Here’s a few of our most frequently asked questions about no score loans:

What do I need to get qualified if I have non-traditional credit or no credit score?

• Typically, you must have four alternative credit tradelines with the most recent consecutive 12-month payment history from the creditor stating each were paid on time.
• Alternative credit can be: cell phone bills, utility bills, insurance that’s paid monthly or quarterly (but not payroll deducted), school tuition, child care, or rent payments.

How do I prepare for the underwriting process?

• With no credit score available, an underwriter will review all of your documentation to establish a history of payments for alternative credit.
• Don’t look for quick answers during this process. It can take about three times longer than a normal borrower file and sometimes additional documentation will be requested.
• Give your underwriter at least 60 days to look in to the loan risks before issuing approval. Your Home Loan Specialist is always available to give a more detailed timeline for the underwriting process and to assist writing a contract closing date.

What type of no score loan has the best chance of approval?

• We’ve found that a 15-year fixed rate loan with a 20 percent down payment gives you the best chance for approval.
• This type of loan eliminates the need for private mortgage insurance (PMI) and presents a lower risk to the loan servicer.

How do I protect myself during the home loan purchase while I’m waiting for a no score loan approval?

• Don’t sign any sales contracts for a home purchase without protective contingencies to cover you in the contract.
• Make the sale contingent upon being fully approved, otherwise all earnest money can be returned to the buyer.
• Stay away from any 100 percent commitments until you know your loan has been “cleared to close” and there aren’t any other conditions needed.