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Can You Buy A Home Without A Credit Score?

Learn the various ways you can get approved for a home loan with little to no credit history.
Dec 08, 2021

Your credit history and credit score are among the top factors lenders consider when they approve a mortgage. This can make it challenging to buy a home for those who don’t have a credit history. Plus, if you’ve never borrowed or used credit cards, your credit score may have little to no information at all.

The good news is, you don’t have to worry about not having an extensive credit history when you shop around for your first home. Here are ways to buy a house without a credit history and still have a chance at mortgage approval.

How to Buy a House With No Credit

  1. Use A Co-Signer

A co-signer is someone who doesn’t live with you, such as a parent or relative, and is willing to get a loan with you and assume responsibility if you can’t make payments. Choosing a co-signer with good credit gives you a better chance at getting your loan approved even if your credit is low or non-existent.

  1. Apply For An FHA loan

An FHA loan is backed by the Federal Housing Administration and is popular for helping people buy a new home even if they have no credit history. The program helps many first-time homebuyers by instructing lenders not to turn away borrowers who don’t have credit scores and look at all aspects of their mortgage application.

  1. Inquire With Your Trusted Loan Professional

There are mortgage lenders who are more flexible when it comes to credit history and are willing to accept loans with little to no credit history. Your loan advisor can guide you and connect you if you choose to go this route. 

  1. Go Through The Underwriting Process

Under normal circumstances, underwriting involves pulling your credit history to prove your creditworthiness. Since you have little to no credit history, you can ask your lender for a manual underwriting process which makes them go through your financial documents such as proof of on-time payments with your landlord, utility companies, insurance companies, and others as evidence of financial responsibility. 

  1. Save For A Large Down Payment

If you can put down or save up for a large down payment, you may have the leverage you need to close the loan. Lenders may choose to overlook little to no credit history for someone who can make at least 20% down.

Ready to purchase a home loan with no credit?

Don’t let good credit scores and long credit history requirements stop you from buying your dream home. There are plenty of ways to get a mortgage with no credit.

Get in touch with our loan experts to help you decide which type of mortgage fits your requirements.

 

✅ Benefits of Contract Loan Processing for VA Loans

  1. Specialized VA Knowledge

    • VA loans have unique requirements (COE, residual income, funding fee calculations, appraisal requirements).

    • A contract processor experienced in VA loans can spot potential issues early and streamline the process.

  2. Cost Savings for Lenders

    • No need to hire full-time staff; processors are paid per file.

    • Helps smaller brokerages or lenders manage fluctuating loan volumes without carrying extra payroll.

  3. Faster Turn Times

    • Contract processors often work remotely and are paid per closed file, so they’re incentivized to move loans quickly.

    • They can push COE requests, follow up on VA appraisals, and ensure VA-specific forms (26-1880, 26-8923) are completed on time.

  4. Compliance & Accuracy

    • VA has strict guidelines (e.g., allowable fees, seller concessions, and veteran protections).

    • A skilled processor reduces risk of compliance errors that could lead to loan buybacks or funding delays.

  5. Scalability

    • During high volume seasons (e.g., rate drops, PCS military moves), lenders can bring on extra processors quickly without long-term HR commitments.

  6. Reduced Loan Officer Burden

    • Lets LOs focus on originating, networking, and serving clients while the processor handles gathering DD-214s, income docs, pest inspection reports (if required), and underwriting conditions.

  7. Improved Borrower Experience

    • Veterans and active-duty borrowers often value clear communication and speed.

    • A processor who knows the VA process can anticipate documentation needs and prevent last-minute surprises.

👉 In short: Contract processors help lenders stay lean, compliant, and efficient, while ensuring veterans have a smoother experience.