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Taking the Next Step: How to Prepare for Your No Score Loan

Needing a no score loan is a good thing and something to be proud of. You’ve worked hard to pay off your debt but still need a way to make homeownership a reality. It’s really a great problem to have! No score loans focus on individuals who have reached the point of being debt free and therefore credit scores become obsolete.

While it’s true that getting a home loan without a FICO score is more difficult, it’s not impossible. In general, no-credit score loans are harder to document, harder to find lenders that will underwrite them, traditionally take longer to go through the underwriting process, may require a significant down payment, and require you to take precautions in the event the program is no longer available. But despite these initial challenges, the result of owning your home is well worth the extra effort.

Not every lender provides a manual underwriting service for no score loans but at Churchill Mortgage, we close no score loans on a regular basis by providing manual underwriting for our customers. Our goal is to not only help explain the process in greater detail but to also help you prepare and protect yourself accordingly.

Here’s what to do if you don’t have a credit score due to paying off debt but wish to purchase a home:

  • Make sure you have four alternative credit tradelines, with one being a rent or lease payment. Contact the creditors and get a letter from each of them on their letterhead showing your name, account number, and information stating your account has been "paid as agreed for the last 12 months." This is usually a good start, but further documentation could be required from the creditor.
  • Become a Churchill Certified Homebuyer before you start looking for a home. By going through this process, you’ll better understand the price range of the homes you can afford. This way you don’t get your hopes up and get emotionally attached to the home of your dreams, only to wait 45 days and find out you cannot get approved.
  • Work with an experienced real estate agent who can help you find a home that you love in your price range, help you negotiate the contract and can walk you through the homebuying process.

** for a 15 year loan, a $100,000 mortgage loan with a rate of 5.00% (APR 5.266%) and a 20% down payment ($25,000) on a purchase price of $125,000 would have a monthly payment of $790.78.*
Important Notices: The interest rates, annual percentage rates (APRs), discount points and rebates shown are subject to change without notice. The monthly payment amount shown includes principal, interest and mortgage insurance only. Your actual monthly payment will be higher if an escrow/impound account is established or required. Your APR will vary based on your final loan amount and finance charges. Stated rates and terms intended as examples only. Call 888.562.6200 for current rates and terms.

Connect With An Expert!

With so much of your hard-earned money on the line, it’s best to seek advice from a trusted home loan expert and have the confidence that you are in qualified hands.

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By submitting this form, I/we agree to your Privacy Policy Terms of Use and authorize Churchill Mortgage Corporation and/or their Preferred Provider for our area and/or The Churchill Agency to receive the above information to assist in obtaining a home loan.

I/we also authorize Churchill Mortgage Corporation, The Churchill Agency and/or their Preferred Provider for our area to contact us regarding but not limited to mortgage and insurance services and products via telephone, mobile phone (including through automated dialing), and/or email, even if telephone numbers or email I/we provide are on any Do Not Call/Contact Registry, such as corporate, state, or the National Do Not Call Registry. The submission of this form does not constitute in any way a formal loan application or a commitment for a loan. By communicating with us by phone, you consent to calls being recorded and monitored. By participating, you consent to receive text messages sent by an automatic telephone dialing system. Consent to these terms is not a condition of purchase.

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