No score is not the same as bad credit.
Some people pay every bill on time and still have no credit score, because they have never used credit cards or loans. Non-traditional credit programs build a credit history from the payments you already make and let it stand in for a score.
- Credit score
- Not required; a documented payment history stands in
- Accounts used
- Rent plus other recurring payments made on time for 12 months, by program
- Programs
- FHA and select conventional programs
- Verification
- Letters and statements gathered with Troy's checklist
How it works
A credit score is built from credit accounts: cards, auto loans, student loans. People who have avoided debt, recent immigrants and younger borrowers often have no score at all, which is a different situation from a low one. Standard underwriting cannot read a blank file.
Non-traditional credit programs solve that by building a credit profile from payments that are not reported to the bureaus: rent, utilities, phone, insurance, tuition, childcare. With roughly twelve months of on-time history across several accounts, documented with statements or letters, the file can be underwritten.
FHA has long allowed non-traditional credit, and select conventional programs accept it under their own rules. Troy supplies the checklist, reviews the documentation before it goes to underwriting and places the loan with the program that reads your history fairly.
- Buyers who have never used credit cards or taken a loan
- Recent immigrants with a strong payment history but no U.S. credit file
- Younger buyers with a thin file
- Borrowers whose only credit accounts are closed or very old
- Buyers who can show twelve months of on-time rent
Not sure you fit? Ask. Troy tells people on the first call when a different program serves them better.
What to consider
Program details vary by investor and change over time. These are the questions that decide whether the loan is right for you; Troy confirms the specifics for your file.
Rent history is the anchor
Most programs require rent as one of the accounts, verified by a landlord letter, cancelled checks or bank statements.
Number of accounts
Programs typically ask for several recurring payments with twelve months of history. Troy's checklist tells you which ones count.
Different from damaged credit
These programs are for borrowers with no score, not for repairing a low one. If you have a score, Troy will tell you which route works.
Program limits
Some programs limit the loan amount, debt-to-income ratio or property type when non-traditional credit is used.
The process
From the first conversation to funding, you deal with Troy.
Talk with Troy
He confirms that you have no score, not a low one, and which program fits.
Gather the history
Troy's checklist: rent, utilities, insurance, phone and other recurring payments, with twelve months of proof.
Underwrite
The documented history replaces the score. Income, assets and the property are underwritten as usual.
Closing and funding
Signing is scheduled around you. Troy coordinates escrow so the loan funds on the date you planned.
Questions people ask
General answers. The answer for your file comes from a conversation with Troy, not from a web page.
Can I really get a mortgage with no credit score?
Yes, through programs that accept a documented history of on-time payments in place of a score. FHA is the most common route; some conventional programs also allow it.
What payments count?
Rent is nearly always required, plus other recurring payments such as utilities, phone, insurance, tuition or childcare, each with about twelve months of on-time history.
Does this work if my credit is bad rather than missing?
No. Non-traditional credit is for borrowers with no score. If you have a low score, Troy will look at programs designed for that situation instead.
Will I pay a higher rate?
Pricing depends on the program. FHA with non-traditional credit is often priced like any other FHA loan. Troy shows you the figures before you commit.
Related programs
Often considered alongside this one. Troy prices the alternatives so you can see them side by side.
FHA loans
Lower down payments and flexible credit guidelines for purchases and refinances, insured by the Federal Housing Administration.
Home purchase
Conventional, FHA, VA, jumbo and down-payment assistance, with a pre-approval that has been underwritten before the letter goes out.
Down-payment assistance
CalHFA and local assistance paired with an FHA, VA or conventional first mortgage to cover part of the down payment or closing costs.
Bank statement
Self-employed income documented with 12 or 24 months of deposits instead of tax returns.
Talk it through with Troy.
No obligation and no credit pull on the first call. Tell him what you’re trying to do and he’ll tell you whether non-traditional credit financing is the right tool, and what it would cost.