No Score Mortgage Loan

Mortgage-World.com is an online mortgage company specializing in no score mortgage loans.

We have over 20 years experience helping borrowers qualify with no credit score or low credit scores.

A "no-score mortgage loan" refers to a type of mortgage that doesn't rely on your traditional credit score to determine your eligibility. This type of mortgage is sometimes also called a "no credit score mortgage.

These loans can help individuals with limited or damaged credit histories become homeowners or refinance their current mortgage.

For a quicker response, call 201-403-8673.

Do You Have No Credit Score or Low Credit Scores?

Having no credit score or low credit scores doesn't mean you won't be able to qualify for a mortgage loan. FHA allows borrowers to qualify for a mortgage loan with having no credit score or low credit scores.

If you're looking to purchase a home, a no score mortgage loan requires a minimum down payment of 3.5%. If you're looking to qualify for a cash out refinance, you must have at least 20% equity in the home after cashing out.

Down payment assistance is allowed. The down payment assistance program must be reviewed to see if it will be acceptable.

Seller concession up to 6% is permitted. It must be agreed upon by the seller and it must be stated in the purchase agreement.

15 Year, 20 Year, 25 Year and 30 Year Fixed available.

For a refinance, 12 months of on time mortgage payments are required.

No Score Mortgage Loan Eligibility

Eligible Properties:

• 1-4 Units
• FHA Approved Condos
• PUDs
• Manufactured Homes

No Score Mortgage Loan Requirements

Bankruptcy - Must be at least 2 years from the discharge date along with having re-stablished good credit.

Foreclosure -  Must be at least 3 years or more from date of trustee's deed or FHA claim at the time of Case # assignment.

Short Sale -  Any Short Sale within 3 years of the case assignment requires a manual underwrite. A borrower who is in default at the time of short sale/restructure or pre-foreclosure or late on any mortgage or installment obligations within 12 months of the short sale is not eligible for a new FHA insured mortgage for 3 years from the date of pre-foreclosure sale to Case # assignment.

Collection Accounts - If collection account balances total to over $1,000, 5% of the total balance must be included in the debt to income ratio.

Tradelines - If no active tradelines appear on the credit report, the borrower must provide 3 alternative tradelines which show a 12 month on-time payment history. Acceptable alternative tradelines can be cell phone payments, car insurance payments, utitlity bill payments, rental payment, netflix payments, etc.

What Documents Will Be Required?

Income - If the borrower is a W2 employee, the most recent 30 days paystubs along with the last 2 years W2s will be required. If the borrower is self-employed, the last 2 years tax returns (all pages) or last 2 years 1099s will be required.  All types of income must have been received for the most recent two consecutive years including overtime, bonus, tips, second job, part-time, commission, self-employment.

Assets - The most recent 2 months bank statements are required. Any large deposits that total to over $1,000 will need to be sourced and seasoned.

Gift - A gift from a family member or relative is acceptable. A gift letter signed by the borrower and gift donor will be required along with the gift donor's 30 day bank statement to source where the gift funds came from.

Benefits of No Score Mortgage Loans

These specialized mortgage options offer unique advantages for individuals who don't have a traditional credit score:

• Accessibility to Homeownership: One of the most significant benefits of no score mortgage loans is that they open the doors of homeownership to a wider range of individuals. People who have yet to establish a credit history, such as young adults or recent immigrants, can benefit from these loans.
• Alternative Credit Assessment: Unlike traditional mortgages that heavily rely on credit scores, no score mortgage loans use alternative methods to assess creditworthiness. Lenders consider factors like payment history for rent, utilities, and other recurring expenses, which allows for a more comprehensive evaluation.
• Credit Rehabilitation: No score mortgage loans can serve as a stepping stone to building a credit history. By making timely mortgage payments, borrowers can start establishing a positive credit record, which can help them access more traditional financial products in the future.
• Flexibility in Loan Approval: These loans provide flexibility for borrowers with unique financial situations. Even if you have a low credit score or a history of financial challenges, you may still qualify for a no score mortgage loan if you can demonstrate the ability to repay the loan.
• Government-Backed Options: Some no score mortgage loans are backed by government programs like the Federal Housing Administration (FHA) or the U.S. Department of Veterans Affairs (VA). These programs often have more lenient credit requirements and can provide additional benefits to eligible borrowers.
• Competitive Interest Rates: While interest rates may be slightly higher for no score mortgage loans compared to conventional mortgages, they are often competitive and manageable. The exact interest rate can vary based on the lender and the specific loan program.
• Homeownership for Self-Employed Individuals: No score mortgage loans can be an attractive option for self-employed individuals who may have variable income or a more complex financial profile. These loans can be tailored to accommodate their unique financial situations.
• Quick Approval Process: In some cases, the approval process for no score mortgage loans can be quicker than traditional mortgage applications. This can be advantageous when you want to secure a home without delay.

The qualification process is quick and easy. Closing usually takes anywhere between 14 days to 45 days. Apply now and find out within minutes if you qualify for a home purchase or cash out refinance no score mortgage loan.

For a quicker response, call 201-403-8673.

We look forward to working with you.