It’s no secret that credit scores are a big part of qualifying for a mortgage in Pennsylvania. After all, lenders want to know that you are capable of making regular payments. A respectable credit score is a good indication that your mortgage payment won’t push you over the financial edge.
The truth is, not everyone has a credit score. Does that mean that these people shouldn’t experience the joys of home ownership? At MortgageDepot, we think that they should have a chance! That’s why we will consider a co-borrower with no credit score for an FHA loan.
There are plenty of good reasons why a person might lack a credit score, and these reasons shouldn’t stand in the way of their real estate goals. You might not have a credit score if:
- You are just beginning your “grown-up” life and haven’t had time to accumulate a credit score.
- You recently moved to the United States.
- You only use cash or debit to fund major purchases.
- You have taken a 24-month (or longer) hiatus from using credit.
Does a home loan that doesn’t require a credit score sound intriguing? Here are the eligibility requirements of this unique program offered by MortgageDepot:
- The primary borrower must have a credit score of at least 620.
- Manual underwrites are not available for borrowers who have a credit score of less than 620.
- Monthly housing payments can’t exceed 31% of gross monthly income.
- Total monthly debt payments can’t exceed 43% of gross monthly income.
- Borrowers must have one month of PITI reserves.
- Only single-family, primary residences are eligible.
- Only purchases or rate/term transactions are eligible.
- Automated Underwriting System (AUS) findings must be listed as approve/eligible or refer/eligible.
- The borrower must present one FHA compensating factor (MortgageDepot will guide you in this department).
At MortgageDepot, we have access to loan programs that cater to unique buyer situations. If you need a mortgage in Pennsylvania but lack a credit score, contact MortgageDepot today for a solution!
Contact us today or email us here for more information.