Mortgage Programs Available Without a Credit Score

In the mortgage world, having a credit score is important and obtaining a credit score may be easier than you think.  In order for a FICO score to be calculated on a credit report, an individual must have at least one account that has been open for six months or longer, and at least one account that has been reported to the credit reporting agency within the last six months.  For someone who does not have any traditional credit, this is good news and opening a credit account should be a top priority.  Although most Conforming loans require that a borrower have at least three accounts open for at least 12 months, at Fairfield Mortgage, we do have two alternatives that can help someone without a credit score obtain a mortgage now.

1. FHA Alternative: this program allows a borrower with no credit score to be on a mortgage as long as there is another borrower on the mortgage who does have a satisfactory credit score.  There is a 1 discount point fee to include the borrower without a credit score.

2. Non-Conforming Alternative:  this portfolio loan program allows a borrower without a credit score to obtain a mortgage with a 25% down payment.  The borrower can not have any bad credit and the rate is about 2% higher than market rate with a max amortization period of 20 years.

September 11, 2012 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

Leave a Comment