Buying a Home with NO CREDIT

Real Estate Insight

May 8, 2013

Buying a Home with NO CREDIT

I have been asked by a first-time home buyer “I have no credit…can I buy a home?”  Your immediate thought may be no…however, there are options for you.  Here are a few key points to begin the process of buying a home with no credit history.

1.  BE PROUD if you have chosen to live without debt, or have not accumulated any debt, if that is the reason why you have no credit score.

2.  Focus on your down payment.  If you are not currently paying on any debt, and you have an income that will enable you to purchase a home, you should be able to save a large amount for a down payment quickly.  When you have no reported credit score, the more money you have for a down payment, the better.  The amount of your down payment and your current monthly income will both be huge factors for your pre-approval.

3.  Begin keeping track, or collect you records, or past consistent payments…including any rental payments, utility bills and any other bill records where you have made consistent payments.

4.  Find a mortgage company that uses a process called manual underwriting.  This will allow for “no credit score” lending.  I can help you find a local lender that uses this process!

Most importantly, never buy a home unless you are ready and will be comfortable with making the monthly payments.  As Always, please let me know if you have any questions!

Tara Moore, REALTOR





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