Yes and no. HUD says you can qualify without credit history, but in the real world lenders want to see some sort of credit history. Lenders are able to document what's called non-traditional credit which is used for those borrowers who have no credit history or very little or new credit history. Most lenders are looking more into credit reports, not just the credit scores, but rather the history itself.
What borrowers can do is, if they have no credit or limited credit history, make sure they can provide the lender proof that they have been paying utilities, auto insurance, mobile phone, etc. for the past 12 months, on time. If you can show 12 months calncelled rent checks, that's a big plus as well.
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Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797