No-Score Loan Programs
What is a no score loan program?
If you have been working hard to pay off your debt and no longer have a credit score as a result of this, a no score loan might be a good option for you. At Churchill Mortgage, we can walk you through the process of getting a no score home loan that can be paid off quickly. This allows you to return to your debt-free lifestyle as soon as possible.
What we talk about in this guide:
The Conventional No-Score home loan program follows conventional loan guidelines and allows borrowers with no credit score to qualify using eligible non-traditional credit or housing payments.
Program Tips
- Your mortgage will be manually underwritten so more documentation may be needed than a traditional mortgage.
- Whether you are planning on putting 10% or 50% down, you must have a documented 10-month housing tradeline for all conventional no-score loans.
- If you are married, make sure all tradelines are in both spouses names.
- Pay your bills monthly - not quarterly, every 6 months, or yearly.
The FHA No-Score home loan program follows FHA government loan guidelines and allows borrowers with no credit score to qualify using eligible non-traditional credit or housing payments.
Program Tips
- Your mortgage will be manually underwritten so more documentation may be needed than a traditional mortgage.
- Whether you are planning on putting 10% or 50% down, you must have a documented 10-month housing tradeline for all conventional no-score loans.
- If you are married, make sure all tradelines are in both spouses names.
- Pay your bills monthly - not quarterly, every 6 months, or yearly.
The VA No-Score home loan program follows VA loan guidelines and allows eligible borrowers with no credit score to qualify using eligible non-traditional credit or housing payments.
Program Tips
- Your mortgage will be manually underwritten so more documentation may be needed than a traditional mortgage.
- Whether you are planning on putting 10% or 50% down, you must have a documented 10-month housing tradeline for all conventional no-score loans.
- If you are married, make sure all tradelines are in both spouses names.
- Pay your bills monthly - not quarterly, every 6 months, or yearly.
USDA home loan programs are government-backed mortgages designed to help low-to-moderate income families purchase homes in eligible rural areas, offering affordable financing options. Key benefits include zero down payment requirements and competitive interest rates, making homeownership more accessible for qualifying borrowers.
The USDA No-Score home loan program follows conventional loan guidelines and allows borrowers with no credit score to qualify using eligible non-traditional credit or housing payments.
Program Tips
- Your mortgage will be manually underwritten so more documentation may be needed than a traditional mortgage.
- Whether you are planning on putting 10% or 50% down, you must have a documented 10-month housing tradeline for all conventional no-score loans.
- If you are married, make sure all tradelines are in both spouses names.
- Pay your bills monthly - not quarterly, every 6 months, or yearly.
Since we follow Dave Ramsey and pay cash for everything, we have no credit rating. John helped us obtain a mortgage based on our savings and home rental history. We are very grateful for his help!
Houston, TX
My wife and I have been working through the baby steps from Ramsey for years and when we started the process of buying a house we wanted to try out Churchill. We actually had no credit score and financing went great and was not painful at all. We closed within a month of making an offer on a house and feel very confident about recommending people to Churchill.
Covington, GA
(FAQ)
Frequently Asked Questions about No-Score Loan Programs
Navigating the world of mortgages and home loan programs can feel overwhelming, but understanding the basics can make the process much smoother. To help you on your journey to homeownership, we've compiled a list of frequently asked questions about mortgages and home loan programs.
Whether you're a first-time home buyer or looking to refinance, these questions and answers are designed to provide you with the knowledge and confidence to make informed decisions about your home financing options.
- Typically, you must have four alternative credit tradelines with the most recent consecutive 12-month payment history from the creditor stating each were paid on time.
- Alternative credit can be: cell phone bills, utility bills, insurance that’s paid monthly or quarterly (but not payroll deducted), school tuition, child care, or rent payments.
- If you’re living rent-free, things get a little trickier. A conventional loan without a 12-month rental payment history will require 12 months of assets to cover your principal and interest (P&I), taxes, property, flood, and mortgage insurance premiums (also known as PITI).
- With no credit score available, an underwriter will go through all of your documentation to establish a history of payments for alternative credit.
- Don’t look for quick answers during this process. It can take about three times longer than a normal borrower file and sometimes additional documentation will be requested.
- Give your underwriter at least 60 days to look into the loan risks before issuing approval. Your Home Loan Specialist is always available to give a more detailed timeline for the underwriting process and to assist writing a contract closing date.
- We’ve found that a 15-year fixed rate loan with a 20 percent down payment gives you the best chance for approval.
- This type of loan eliminates the need for private mortgage insurance (PMI) and presents a lower risk to the loan servicer.
- Don’t sign any sales contracts for a home purchase without protective contingencies to cover you in the contract.
- Make the sale contingent upon being fully approved, otherwise all earnest money can be returned to the buyer.
- Stay away from any 100 percent commitments until you know your loan has been “cleared to close” and there aren’t any other conditions needed.
More Guides to Home Loan Programs
Explore more guides to other loan program types. If these programs don't fit your needs, look into our other guides to the other types of loan programs. To learn more about loan programs in general, you can view our Expert Guide to Home Loan Programs.
- Your Expert Guide to Conventional Home Loan Programs
- Your Expert Guide to Government Home Loan Programs
- Your Expert Guide to Construction Home Loan Programs
- Your Expert Guide to Investor Home Loan Programs
- Your Expert Guide to Specialty Home Loan Programs
- Your Expert Guide to Non-Conforming Home Loan Programs
- Your Expert Guide to Non-QM Home Loan Programs
- Your Expert Guide to No-Score Home Loan Programs
Disclaimers:
Other restrictions or limitations may apply. Not all applicants will qualify. Not a commitment to lend. Terms and conditions can change without notice.
We strive to provide comprehensive information about our home loan programs; however, it is important for users to understand that not all programs are available at all times or in all locations. Each loan program may have specific prerequisites or requirements that must be met in order to qualify or become eligible.
While we make every effort to ensure the accuracy and currency of the information on our website, we cannot guarantee that a particular loan program will be available when you apply. Additionally, meeting the listed criteria does not guarantee qualification for any program.
Please note that availability and eligibility for our home loan programs are subject to change without notice. We recommend contacting us directly to verify the current status and specific requirements of any program you are interested in before making any decisions based on the information provided on our website. Our team is here to help you navigate your options and find the best loan program to meet your needs.
