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.
  • If you’re living rent-free, things get a little trickier. A conventional loan without a 12-month rental payment history will require 12 months of assets to cover your principal and interest (P&I), taxes, property, flood, and mortgage insurance premiums (also known as PITI).

How do I prepare for the underwriting process?

  • With no credit score available, an underwriter will go through 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?

  • 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.

Click here for more information on how to prepare for your no score loan.