No Credit Scores, believe it or not it's very common. There
are lots of people out there that don't have any credit. It
is like a double edge sword, no credit could hurt you, but
bad credit will definitely hurt you. Normally people that
have no credit scores, fall into two categories.
1. Young and just starting out.
2. I pay cash for everything.
Luckily there is hope for individuals that don't have
credit scores and want to buy a home. There is a loan
called FHA, which is a life saver for lots of happy
homeowners. FHA is the single largest insurer of loans in
the world. This particular loan is more lenient with banks,
because it is insured by HUD. The qualifying process is
less stringent. FHA does not require credit scores to get a
mortgage. It offers an alternative in place of no scores.
It will allow you to provide alternate lines of credit.
Typically the underwriter will require 3 sources. The
following would work.
1. Last 12 month payment history from any utility company.
2. Day Care payment history for the last 12 months
3. Letter from car insurance provider.
4. Life insurance payment.
I have personally helped many families that had no credit
scores get a mortgage. Here are some of the benefits of a
FHA loan.
1. Low down payment
2. No credit scores required
3. Easy credit qualifying
FHA has been helping families since 1934, and its still is
doing so. Even with all the changes going on in the
mortgage industry, this particular loan is still the
strongest provider of home ownership today. So if you don't
have any credit scores, the answer is yes, you can get a
mortgage. FHA typically requires 3% investment from the
buyers, but it will allow you get a 3% gift from a blood
relative or Bond money assistance from your local city. It
will also allow the seller to pay 6% of your closing costs,
so you can essentially get into a house with little or no
money at all. Are you currently in a CH 13 bankruptcy? No
problem, you can get a mortgage as long as you have been in
the bankruptcy for a minimum of 12 months. The trustee is
required to give written permission for you to purchase a
home. There is no other loan program that has this type of
guidelines. You can also get low interest rates with FHA,
even though you have no scores, or low scores. I personally
think its one of the best loans to help low income families
into a mortgage. Do you have medical collections; well FHA
does not require you to pay of medical collections, even
recent ones. So I think you get the idea, it's a great loan
for all types of situations.
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About the Author: Mike Clover is the owner of
http://www.my720fico.com . My720fico.com is one of the most
unique on-line resources for free credit score reports,
Internet identity theft software, secure credit cards, and
a BlOG with a wealth of personal credit information. The
information within this website is written by professionals
that know about credit, and what determines ones credit
worthiness.
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