How Can I Buy a Home if I Have No Credit History?

The obvious answer to this question is pay cash, but that's out of the question for most buyers. If you can do that, this article isn't for you, since you already have the answer. This article is about getting a mortgage without a credit history

Note: If you have a poor credit history, this article is not for you, but my article about improving a bad credit score if definitely for you.

Manual Underwriting

Most loans go through an automated underwriting process, which is a computer process that determines credit approval. This uses credit reports and scores along with inputted information . Manual underwriting is a process by which the underwriter (person responsible for the credit decision) goes through the documentation by hand to verify credit-worthiness using factors such as income, expenses, and currently recurring bills.

Using manual underwriting, you can obtain a home loan without a credit score. This doesn't mean everyone who walks into a bank or lender will walk out with a home loan using manual underwriting. Since this isn't the normal way of doing things, there are some special requirements. Specifically:

Your prior credit history (that which is no longer included in credit scores, but is still present) must be in good shape, too. Late payments and write-offs could affect your ability to get a home loan through manual underwriting.

Not all lenders will do manual underwriting, so check with your preferred lender to see if this is a possibility with them. If not, or you just want other options, call me at 417-439-5371 or email me by clicking here and I can point you in the write direction.