No Credit Score? We now have the ability to close Fannie Mae and Freddie Mac  (Conventional Loans) with out all borrowers having a credit score.

This is part of our objective to move to no overlays at all. We have very few but this was one of them.

But this comes with some rules to play by.

THINGS TO KNOW

• Not allowed if the product requires a score
• Primary Purchase & Rate/Term only
• Fannie Mae allows 1 – 4 Units
• Freddie Mac is 1 unit only
• All borrowers must occupy property
• Must be a fixed rate product. Freddie Refi Possible NOT Eligible
• Must receive Approve or Accept response through the automated underwriting engine
• One borrower must take homeownership class

NON-TRADITIONAL CREDIT

At least one of the non-traditional credit must be housing related. Only exception is with Fannie if they currently own the home free and clear then you must prove the pay history of real estate taxes.

You need one housing and one non-traditional one which can be utility, insurance etc. This guideline is per borrower. If you have two borrowers only one is required to have housing history but both require two tradelines each.

You cannot have any judgements, collections or liens on credit within the last 24 months except medical.

Fannie Mae Only – If you use a third party asset verification program which essentially means it goes through a software that recognizes I believe 12 months of bank statements showing payment patterns within their bank accounts non-traditional credit is then not required. Most people do not use or have this software.