Mortgage Without A Credit Score

Mortgage Without A Credit Score Lending Guidelines

Gustan Cho Associates are mortgage brokers licensed in 48 states

This ARTICLE On Mortgage Without A Credit Score Lending Guidelines Was PUBLISHED On July 1st, 2020

What is the mortgage without loan guidelines

Most Americans understand that obtaining a mortgage has a lot to do with your credit score.

  • It is estimated that one in five Americans do not have a credit score
  • The CFBP or Consumer Financial Protection Bureau calls not having a credit score, “credit invisible”
  • They estimate that over 26 million American adults do not have a reporting credit score
  • In this blog, we will detail how to buy a house if you do not have a credit score, reasons you may not have a credit score, and how to obtain a credit score if you have time

In this article, we will discuss and cover qualifying for a Mortgage Without A Credit Score Lending Guidelines.

Mortgage Without A Credit Score Lending Guidelines During The COVID-19 Pandemic

Even during these crazy times of the COVID-19 coronavirus, Gustan Cho Associates are still funding mortgage loans at a rapid pace.

  • We are extremely busy and here to help with your mortgage needs
  • We do not have any LENDER OVERLAYS

The team at Gustan Cho Associates is available seven days a week, evenings, weekends, and holidays to assist you with your mortgage needs.

Reasons Why Borrowers Do Not Have Credit Scores

What are the reasons why borrowers do not have credit results

The reason you do not have a credit score.

  • The main reason Americans do not have a credit score is they have not applied for credit
  • The earlier you do this in life, the better
  • Having long seasoned tradelines can only improve your credit score, assuming they are paid on time
  • If you do not have a reporting credit score, it can be difficult to obtain even a simple credit card
  • Some individuals may only have medical collections reporting to the credit bureaus and not produce a credit score
  • Some Americans have not used credit in such a long time that they do not have a score reporting
  • Credit scoring mirrors the motto “use it or lose it”
  • It may sound backward, but you must use credit to have a credit score
  • Someone who is financially secure and pays for everything in cash may not have a credit score
  • Which can be a disadvantage when looking to buy something with credit

There are non-lending opportunities based on credit as well. For instance, many jobs require a credit check before you will be hired. Having a credit score is more important than ever.

How To Obtain A Credit Score

How to obtain a credit score?

  • Many individuals do not have a credit score because they have not applied for credit in their life
  • You may be new to the country or just becoming an adult
  • You will want to establish trade lines that report to all three credit bureaus as early as possible
  • Your credit score can help you in life
  • Whether it’s buying a car, paying less interest, or obtaining a mortgage, credit scores are very important
  • If you are having trouble opening a credit card because you do not have a credit score, it’s usually in your best interest to obtain a secured credit card
  • Typically, you pay your bank a few hundred dollars and they give you a credit card with a limit of that amount

They will report your usage and payment history to the credit bureaus. This is one way of building a credit score.

How Can I Qualify For A Mortgage Without A Credit Score Lending Guidelines

How Can I Qualify For A Mortgage Without A Credit Score Lending Guidelines

Mortgage programs are available if you do not have a credit score.

  • Gustan Cho Associates are able to fund FHA, VA, and Conventional mortgages even if no credit score is reporting
  • In order to fund a mortgage loan with no credit score is available, a borrower must provide non-traditional credit tradelines
  • Non-traditional credit tradelines are when we verify your payment history with bills that do not report to credit bureaus
  • Typically you will need to verify at least 12 months of on-time housing payments, usually rental payments
  • You will also need to provide a 12-month history of on-time payments for two other bills such as a cell phone or utility bill
  • You will need to get a bank print out of the last 12 on-time payments or send in your last 12 bank statements (all pages)
  • From this documentation, your mortgage team will complete a credit supplement to verify you have paid these accounts on time

For more a nontraditional credit, please read our blog on NON-TRADITIONAL CREDIT.

Qualifying For A Mortgage With Non-Traditional Credit Tradelines

When utilizing nontraditional credit, your credit score is assumed to be 580 for FHA and VA and 620 for conventional.

  • This allows you to put zero down payment for VA, 3.5% for FHA, and 5% for conventional mortgages
  • This rate will be based on these credit scores
  • With the current market and credit scores in this tear, DISCOUNT POINTS are usually required to obtain a loan

For more information please call Mike Gracz on 630-659-7644. Mike will have a one on one mortgage consultation with you and pair you with a licensed loan officer to complete a mortgage application. Many lenders will tell you they cannot help you if you do not have a credit score, keep in mind this is an overlay and not an agency guideline. We are here to help.

About 75% of our clients have been turned down by their current lender due to lender overlays. If you received a last-second denial or are not confident in your lender, please give us a call today. We are available 7 days a week. We would love to put a second set of eyes on your mortgage application. You may call or text Mike Gracz on 630-659-7644. Email works better, please send an email to

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