Can You Get a Mortgage With No Credit?

It isn’t uncommon to hear advice when you have no credit including that you should build up your credit by getting a car loan or credit card. They’ll tell you not to close your accounts or run up your balances. In other words, these individuals will advise you to go into debt without telling you how to get out. Additionally, they’ll let you know this is the only way you can obtain a mortgage loan. While lenders like to see a history of accounts being paid down on time each month, this isn’t the only way to establish trust.

Try for an FHA Loan

Those who are attempting to purchase a home for the first time tend to carry credit scores that are lower than many others in the general population. The main reason is that these first-time buyers have a shorter history of managing their credit. The solution is not to obtain more debt, though. Instead, borrowers should seek alternative solutions whereby credit scores are less important. For example, FHA loans place less emphasis on credit scores. The Federal Housing Administration looks at every aspect of a borrower’s mortgage application. Many no credit mortgage lenders will service FHA loans to borrowers with little or no credit.

Be Responsible with Your Credit

If you do have credit, be responsible and make your payments on time every time. In doing so, you can build your credit. For those who would like to build up their credit, obtaining a low-balance credit card and paying it on time each month is the quickest way. However, it can take up to twelve months before changes begin appearing favorably on credit scores. If anything negative or inaccurate appears on credit reports, the must be addressed immediately. You can request a copy of your credit report for free from each credit reporting agency once per year, and you can check for updates anytime online. When you keep credit up to par, it’s possible to use the best mortgage lenders at your area banks or your local credit union mortgage lenders.

Low or Bad Credit History

If you have low or bad credit, this means you’ve made money mistakes in the past. While it’s challenging to find chapter 13 mortgage lenders, it isn’t impossible. These lenders differ from low income mortgage lenders in that they try to help those who have made money mistakes in the past find alternative ways to mortgage a home. Banks will find a list mortgage lenders who are willing to work with high-risk borrowers and provide this list of non recourse mortgage lenders to borrowers to help them find a loan. Under some circumstances, working with co op mortgage lenders or third party mortgage lenders may be the only option.

Do Your Homework

When researching lending institutions, be aware that many mortgage companies are popping up throughout the country that aren’t legitimate. Avoid using overseas mortgage lenders unless they’ve been thoroughly researched, for example. Use LLC mortgage lenders, 80 10 10 mortgage lenders, and those listed in the top 50 mortgage lenders. If you need a mortgage lender review, speak with your local bank or credit union about ratings for mortgage lenders and who they believe are the top 20 mortgage lenders in your state. For example, if you live in Rhode Island or Florida, can they recommend the best Rhode Island mortgage lenders or mortgage lenders in Florida? If they know Spanish is your first language, can they recommend Spanish mortgage lenders?