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Do I have to have credit to get a home loan?

I have never had a credit card, but I have also never had any debt as I have no student loans or car loans. Can I still get a home loan without a credit score, or do I need one? by MarnieM99 from Oklahoma City, Oklahoma. May 30th 2013 Reply


Tim Howard (TimHoward)
#74 ranked lender in Ohio - 52 contributions

Typically yes, you need a qualifying credit score with a minimum of 3 trade lines for most mortgage scenarios. There have been No Score options in the past but I'm not sure if they're still around. Hopefully someone else on the forum can help with that...And by 3 trade lines I mean 3 accounts that report to the Credit Bureaus i.e. Car loan, credit cards etc. I would recommend getting at least one credit card, even if its secured by your own funds as long as it reports, keep the balance around 30% of the limit and that will help build your credit. These days you need good credit for just about everything, including employment in many cases, so it's very important to start building it up as soon as you can. Good luck!

May 30th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

It is difficult, but you may be able to use utility and rent payments to establish credit worthiness.

May 30th 2013
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Tyler Whyburn (OklahomaMortgage)
#21 ranked lender in Oklahoma - 24 contributions

Are you Native American? If so I may be able to help. Other loan options will be more strict on your credit history. Most all loans will require at least 2 credit scores, with the exception of the Section 184 (Native American) loan. TYLER WHYBURN l Mortgage BankerCurrington Mortgage Company 8516 E. 101st Street Suite F l Tulsa, OK 74133 p 918.394.5626 (LOAN) l f 918.394.5636 l c 918.809.5444 www.ownyourdoorbell.com, www.curringtonmortgage.com, www.21dayclose.com21 Day Closing Guaranteed.NMLS #858012Branch NMLS #203931

May 30th 2013
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Jason Vondrak (jvondrak)
#209 ranked lender in California - 1,741 contributions

In most cases, yes, you will need established credit in order to get a home loan. Start beginning to build your credit by getting a credit card, which you can pay off each month. That will show the credit bureaus that you are capable of borrowing money and paying off debt and will help to start building your credit. Even if you are able to find funding now without established credit, beginning to build you credit now is important, because you will need it for many things in life.

May 30th 2013
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Josh Lund (Josh_Lund)
#47 ranked lender in Minnesota - 113 contributions

Most lenders do require you to have a credit score. There are a few lenders that offer non traditional trade line that can be added to your report such as rental, cell phone, utilities bill. etc. You should contact your local bank for more information.

May 30th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

It is difficult, but you may be able to use utility and rent payments to establish credit worthiness.My advice is to apply for a few store cards to establish credit

May 30th 2013
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#1 ranked lender in Florida - 676 contributions

Target, Walmart, and Macy's are great places to get a credit card, keep a little balance, pay on time and wait a year for the tradional way. otherwise there are lenders that take 3 alternative tradelines. We aren't licensed in OK, but Good luck

May 30th 2013
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Raymond Denton (Raymond)
#12 ranked lender in Ohio - 224 contributions

You'll need credit scores to get a mortgage.

Jun 1st 2013
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