How to Qualify For a Mortgage With No Credit History

When buying a home, lenders almost always check your credit history to assess how likely you are to repay the loan. But what if you don’t have a credit history at all? Maybe you’ve never used credit cards, taken out a loan, or your credit profile is too thin to generate a score. If you’re asking, “Can you get a mortgage with no credit history?” the answer is yes—though it’s more challenging, and you’ll need to show lenders your financial responsibility in other ways.

Whether you’re browsing homes for sale in Los Angeles, CA or planning to buy in Chicago, IL, Redfin explains your options, what lenders look for, and the steps you can take to qualify.

Why credit history matters to lenders

Credit reports and scores give lenders a quick snapshot of how you’ve managed debt. Without this data, lenders don’t have a standard way to measure risk. That doesn’t mean you’re automatically disqualified, but you’ll need to prove you’re financially reliable through alternative documentation.

>>>Read: What Credit Score is Needed to Buy a House?

No credit vs. bad credit

Many people assume that having no credit history is the same as having bad credit, but lenders view them differently.

• No credit: You don’t have enough credit history to generate a score. This typically happens if you’ve never used credit cards, loans, or other forms of debt reporting to the credit bureaus. This isn’t automatically negative, but some lenders may still see it as a risk because they have no repayment track record to review.
  
• Bad credit: You do have a credit score, but it reflects missed payments, defaults, high debt levels, or other financial issues. Unlike no credit, bad credit shows a track record of risk, which makes it harder to qualify for a mortgage or secure favorable terms.

Key takeaway: With no credit, you may still qualify for FHA, VA, or USDA loans if you can show a solid payment history through alternative documentation. With bad credit, you’ll likely need time to improve your score before you can be approved.

Options for getting a mortgage with no credit history

1. FHA loans

The Federal Housing Administration (FHA) offers programs designed for borrowers with limited or no credit history. Lenders can use non-traditional credit references, such as rental history, utility bills, insurance payments, or cell phone bills, to establish a pattern of on-time payments.

2. VA loans

If you’re an eligible veteran or active-duty service member, a VA loan can be a strong option. VA guidelines are more flexible, and lenders can rely on alternative credit data in place of a traditional credit score.

3. USDA loans

For buyers in rural and suburban areas, USDA loans may also allow manual underwriting when a credit history is missing. Again, consistent payment history from non-traditional accounts can help.

>>>Read: How to Find and Buy a USDA-Eligible Home

4. Manual underwriting

Some lenders will manually review your financial situation instead of relying solely on automated systems. They’ll look at:

• Rent payment history
• Utility bills
• Insurance premiums
• Bank statements showing consistent savings habits

Manual underwriting takes longer, but it allows you to demonstrate reliability without a credit score.

>>>Read: Types of Home Loans

What lenders want to see instead of credit

Without a score, lenders may request extra documentation, such as:

• Proof of consistent rent payments (12 months of checks or statements)
• Utility or service payment records
• Stable employment and income verification
• Lower debt-to-income ratio (DTI)
• Larger down payment (sometimes 10–20% or more)

Tips to improve your chances of approval 

• Save for a larger down payment: Reduces lender risk and makes approval more likely.
• Show steady employment: The longer you’ve been with an employer, the better.
• Maintain strong savings: Bank statements that show you have emergency funds help build confidence.
• Consider a co-signer: Someone with established credit can strengthen your application.
• Start building credit now: Even a secured credit card or small loan reported to credit bureaus can help you establish a track record before applying.

Should you build credit before buying?

If you’re not in a rush to buy, building a credit profile can make the process smoother and may unlock better interest rates. Even six months to a year of responsible credit use can improve your options significantly.

>>>Read: How to Improve Your Credit Score Before Buying a Home

Frequently asked questions about getting a mortgage with no credit history

1. Can I get a mortgage if I have no credit score?

Yes. Some lenders use manual underwriting or accept alternative credit data like rental history, utility payments, and bank statements to approve borrowers with no credit score.

2. What loans are available for buyers with no credit history?

FHA, VA, and USDA loans are the most common programs that allow applicants with no credit history. These loans often accept non-traditional credit references instead of a credit score.

3. Will I need a larger down payment if I have no credit history?

Sometimes. A bigger down payment (10–20% or more) can help offset a lender’s risk and make approval more likely. For FHA loans, the minimum down payment is still 3.5% – but offering more can strengthen your application, especially if you have limited credit history.

4. Can I use rent payments as proof of credit history?

Absolutely. Documented, on-time rent payments are one of the strongest forms of alternative credit that lenders consider during manual underwriting.

5. Should I build credit before applying for a mortgage?

If you’re not in a rush to buy, building credit first can help you qualify more easily and secure a lower interest rate. Even six to 12 months of responsible credit use can make a difference.

6. Is it easier to rent an apartment with no credit than to buy a home?

Yes. Renting an apartment usually has lower requirements, but landlords may still ask for proof of income, a higher deposit, or a co-signer if you don’t have credit.

The bottom line on getting a mortgage with no credit

You can get a mortgage with no credit history, but it requires extra effort and the right loan program. FHA, VA, and USDA loans offer flexible pathways, and manual underwriting gives lenders alternative ways to evaluate your financial responsibility. By preparing documentation, saving for a strong down payment, and showing stability in income and expenses, you can still achieve homeownership, even without a traditional credit score.