Buying a home with no credit can often prove to be somewhat of a challenge. While many consumers who buy everything with cash feel that not using credit is a good thing and should help them, the opposite of that is true. If you would like to buy big dollar items, such as homes, cars, boats, etc... the majority of the population can not afford to simply pay cash for these items. Thus they need to obtain financing. Not having any credit history does not demonstrate or prove that a person can be responsible borrowing a large sum of money, thus making this type of loan somewhat high risk. However, there are mortgage programs available that will permit borrowers to buy a home without having any credit. Therefore, buying a home with no credit can be more difficult than having a proven credit history but there are still mortgage loan options out there for you.

Often times no credit is better then a low credit score, programs through many sub prime lenders and even conforming lenders are available for a borrower with no credit scores. However to get a conforming loan with no credit scores there will have to be good compensating factors such as down payment, good financial reserves and good job history.

FHA provides financing to folks who do not have traditional credit, and can help you in buying a home with no credit. You must have 4 alternative trade references which can be verified as being paid in a timely manner for 1 year. These items may include your rent, and utilities such as gas, electric, phone, cable, etc. You must also meet FHA's standard debt-to-income and down payment requirements as well.

 

 ++