At North Star Mortgage Network, we understand that not everyone has a traditional credit history. Whether you’ve avoided debt, recently moved to the U.S., or simply haven’t built up a credit score, you may still have options when it comes to securing a mortgage. Here’s what you need to know about getting a home loan without a credit score.

Can You Get a Mortgage Without a Credit Score?

Yes! There are loan programs available for borrowers who do not have a credit score. However, the requirements and eligibility criteria vary depending on the loan type. In most cases, lenders will look at alternative credit sources, such as rental payment history, utility bills, and other consistent payment obligations.

Loan Options for Borrowers Without a Credit Score

FHA Loans

For borrowers without a credit score, lenders must verify creditworthiness through a Non-Traditional Mortgage Credit Report (NTMCR) or independent verifications from non-traditional credit providers.

FHA Loan Parameters:

• Reserves required:
  • 1 month for 1-2 unit properties
  • 3 months for 3-4 unit properties
• Maximum debt-to-income (DTI) ratios of 31%/43%
• Non-occupying borrower income is not permitted
• A minimum of three non-traditional credit histories must be provided, including a 12+ month satisfactory non-traditional housing credit history
• Compensating factors are required

Conventional Loans (Fannie Mae)

Borrowers without a credit score may still qualify for a Fannie Mae mortgage if they meet the following criteria:

• Single-family primary residence
• Purchase or limited cash-out refinance
• Fixed-rate mortgage
• Loan-to-value (LTV) ratio of 95% or lower
• Minimum of two non-traditional credit sources, including a 12+ month satisfactory housing payment history
• No recent delinquencies, collections, or judgments (except medical collections)
• Approve/Eligible recommendation required from Desktop Underwriter (DU)
• Mortgage insurance (MI) must be ordered through Essent Guaranty or Arch
• If all borrowers rely solely on non-traditional credit, at least one must complete homeownership education before closing

Conventional Loans (Freddie Mac)

For mortgages where no borrower has a credit score, the following requirements apply:

• Purchase or no cash-out refinance
• Secured by a 1-unit primary residence
• LTV/TLTV/HTLTV must not exceed 95%
• Fixed-rate mortgage only
• High-balance loans are not eligible
• Mortgage insurance (MI) must be ordered through Essent Guaranty or Arch
• Each borrower must have at least two alternative credit references with a history of at least 12 months
• At least one borrower must have a verified housing payment history
• No delinquencies on housing payments in the past 12 months
• No collections (other than medical), judgments, or tax liens in the past 24 months
• Homeownership education required if all borrowers use non-traditional credit

What If One Borrower Has a Credit Score and the Other Does Not?

If one borrower has a credit score and the other does not, lenders will follow automated underwriting system (AUS) feedback:

• Conventional Loans: If the borrower with a credit score contributes more than 50% of the qualifying income, lenders do not need to document a non-traditional credit history for the borrower without a score.
• Government Loans: If the loan receives a referral, manual underwriting guidelines apply.
• Fannie Mae: If the borrower with a credit score contributes 50% or less of the income, lenders must document a non-traditional credit history for the borrower without a score.

Final Thoughts

Getting a mortgage without a credit score is possible with the right preparation and loan program. At North Star Mortgage Network, we can help you navigate the best options to ensure a smooth homebuying process. Contact us today to explore your mortgage possibilities!