Can You Buy a Home Without a Credit Score?

Think you need a credit score to buy a home?

Think again. Freddie Mac has updated its lending guidelines to allow homebuyers without a traditional credit score to qualify for a mortgage. While the path may look a little different, it’s absolutely possible to become a homeowner—even if you’ve never had a credit card or loan in your name.

In this post, we’ll break down exactly what you need to qualify, what types of homes and loans are allowed, and the steps to get approved. Whether you’re buying your first home or helping a client navigate this unique mortgage option, this guide covers it all.

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What Types of Homes Can You Buy Without a Credit Score?

When you apply for a mortgage without a credit score, your property options are a bit more limited, but still offer solid choices:

✅ You Can Buy:

• A one-unit property (single-family home, condo, or PUD)

• A home using a fixed-rate mortgage

❌ You Cannot Buy:

• A manufactured home

• Use a super conforming loan

• Use the Refi Possible program

Pro Tip: Stick with a traditional, single-unit home and a fixed-rate loan to qualify under these guidelines.

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Who Can Be on the Mortgage?

There are specific borrower requirements for those applying with no credit score:

• All borrowers must occupy the home as their primary residence

• Must document rental history

• Must provide at least two non-traditional credit references

• No non-occupant co-borrowers allowed (so no co-signers who won’t live in the home)

If you’re planning to apply with a co-signer who won’t live in the home, unfortunately, this loan option won’t work.

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Credit & Payment History Requirements

While a credit score isn’t required, a history of responsible payments still is.

Here’s What You’ll Need:

• At least 2 non-traditional credit references (established for 12+ months)

• Clean rental history (no 30-day late payments in the last 12 months)

• No more than one late payment on your non-traditional credit references

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What Counts as a Non-Traditional Credit Reference?

These are bills and accounts that don’t show up on your credit report, but still demonstrate your ability to manage payments responsibly.

Acceptable Non-Traditional Credit References:

• Auto insurance payments

• Utilities (electric, gas, water)

• Phone or internet bills

• Rent payments

• Store or furniture installment accounts

As long as you can document 12 months of on-time payments, they’ll count toward your application.

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What If You Have Past Financial Challenges?

Life happens. If you’ve had collections, judgments, or tax liens in the past, here’s what you need to know:

• No new collections, judgments, or tax liens in the past 24 months

• Medical collections are excluded—they don’t count against you

• Older financial issues (2+ years old) won’t disqualify you

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Do You Need a Homebuyer Education Course?

Yes. At least one borrower must complete a homeownership education course before closing.

Even if it wasn’t required, this is a smart move—especially if you’re buying your first home. It will help you:

• Understand the full homebuying process

• Prepare for homeownership responsibilities

• Ask smarter questions and avoid costly mistakes

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How Much Can You Borrow?

Good news! You can still get a low down payment loan, even without a credit score.

• Borrow up to 95% of the home’s purchase price or value

• Only a 5% down payment is required

This puts homeownership within reach for many buyers who may not have a large savings cushion or extensive credit history.

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How to Start the Process

If you or your client is considering buying a home without a credit score, here are the next steps to get mortgage-ready:

✅ Your No Credit Score Mortgage Checklist:

• Gather non-traditional credit references (you’ll need 2)

• Ensure each has 12 months of on-time payments

• Review your rental payment history—make sure it’s clean for the past year

• Complete a homebuyer education course

• Work with a lender experienced in no credit score loans

Not all lenders are comfortable—or even familiar—with these types of loans, so choose someone who specializes in them.

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Let’s Make It Happen

If you’re wondering whether you or your client can qualify for a mortgage without a credit score, let’s talk. I’ll walk you through the process, help you gather the right documents, and make sure you’re ready for approval.

🎯 Ready to take the next step?
Click [here] to book a free consultation and get started on the path to homeownership—credit score or not.

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Final Thoughts

You don’t need a perfect financial past—or even a credit score—to buy a home. With the right strategy, proper documentation, and the right lender in your corner, you can turn the dream of homeownership into a reality.