What steps would I have to take to get a mortgage with no credit?

Asked by Alyssa Mason, Greenwood, IN Thu Jan 30, 2014

I'm only 20 and my fiance is 23. Neither of us have credit but we would like to find a new home. Is there something for first time buyers like us? Between the two of us we make about $40,000 a year if that changes anything.

Help the community by answering this question:

+ web reference
Web reference:


Bettina Sett…, Agent, Greenwood, IN
Fri Jan 31, 2014
Many banks and lending institutions will tell you to open up some sort of line of credit like a credit card to establish a FICO soce to be able to buy a home.

You don't have to.

There are lenders out there who are still using manual underwriting to qualify a buyer even for an FHA loan.

You just need to show at the minimum 4 qualifying sources of credit. Rent, utility, cell phone payments can be part of the qualifying sources.
1 vote
My NC Homes…, Agent, Chapel Hill, NC
Sun Aug 3, 2014
In order to get a mortgage you need three things: Income - you have that covered, Assets - cash on hand to put down on whatever you're buying, and Credit. Without a credit scored you are not going to be able to get a loan. That said you may have a credit score. Have you been paying a cell phone bill, utility bills, a car note, student loans? All of these go towards your credit score. If you really have no credit score than you need to start building one up. I've attached a link below that you may find of interest.
0 votes
Becky Johnson, , Dallas, TX
Fri Jan 31, 2014
I want to say there are no credit score loans out there, they just use non traditional trade lines instead. I would go to The Lenders Network they will be able to find out if those loans are available and who offers them. Hope this helps!
0 votes
Avery Garrett, Agent, Greenwood, IN
Fri Jan 31, 2014
HI Alyssa,

I am an Realtor in that area and work with a lender who specializes in these different credit situations. While some lenders are able to use alternative trades, like utility bills, you will need to establish some credit to get a mortgage.

If you follow the below steps, you will build positive credit, and should be ready for a home loan inside of 6 months.

1) Go to your bank or credit union and get 2 secured credit cards. You will basically deposit an amount, and they will give you a credit limit for that amount. Obviously, the higher your credit limit is, the more favorably it is looked upon. Keep your balance on these cards at 30% of the credit limit, and make payments on time every month

2) BMO Harris has a great product called the Credit Builder CD. You are essentially purchasing a CD (Certificate of Deposit) for $1,000 on credit. You pay $45 per month for 2 years, and you have the CD you can cash in at the end. They report to the credit bureaus.

The key is to get 3 credit lines, paid on time.

If you have any further questions, or would like more specific advise or your circumstances, give me a call at 317-721-2274.

Thank you for the question!

Avery Garrett, Realtor
Coldwell Banker Kaiser
Search for homes, or find out what your home is worth at http://www.SoldByAvery.net
0 votes
Garrett Penn…, Agent, Greenwood, IN
Fri Jan 31, 2014

Great question! As a younger full-time Realtor, I consult many first time home buyers through the process of purchasing their first home. I know it can seem overwhelming, but there are some easy steps you can take to build some credit in a short amount of time. (I know this because I am in the process of doing this myself!). My market specialty is the south side & I live in Greenwood. Feel free to give me a call for some advice. My mobile # is 317-946-3162. You can check me out at GarrettPennington@callcarpenter.com!

--Garrett Pennington
0 votes
Correction: GarrettPennington.callcarpenter.com
Flag Fri Jan 31, 2014
Anne Brown, Home Buyer, Franklin, IN
Thu Jan 30, 2014
Look into an FHA loan. My husband and I are in the process of buying a home in whiteland indiana. We used mo Harbert from realty world in greenwood, he is awesome. As or loan agent we are using BMW Harris bank also in greenwood.
0 votes
Anne is right, Mo is great! I think Anne is referring to BMO Harris bank. There are many different places to obtain an FHA loan, but you will need to establish credit.
Flag Thu Jan 30, 2014
Jake Stiles, Agent, Greenwood, IN
Thu Jan 30, 2014
If you and your fiance have any interest our team can sit down with you and outline a plan of action to get you where you need to be to buy a home this summer. It sounds like you guys have enough income depending on your outgoing expenses. It wouldn't cost you anything and we are local so we can sit down with you face to face at our office.

Give us a call if you want to talk.

jake@compassrealty.co (not .com)

0 votes
, ,
Thu Jan 30, 2014
We offer alternative credit programs. Let's discuss your loan scenario in more detail. Contact me at 800 315 8803. My name is Bart and I have been in the mortgage business since 1987. I am happy to answer your mortgage questions, 7 days a week and review your loan scenario. Until then, I look forward to hearing from you.

Bart Gabe - Lending Nationwide Since 1987



800 315 8803

NMLS 20743
0 votes
Fritz Walter, Agent, Milford, CT
Thu Jan 30, 2014
You can start buidling your credit with a secured credit card.

All the best,

Fritz Walter
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more