Home loan with no credit?

[jal1p]

Dave is all about never using a credit card but then how do I qualify for a home loan with no credit? Can I build up credit with only a checking account?

[Greebo]

You do not need to.

Most banks do "monkey pushes the button" lending. They look at your FICO and determine if you qualify for the mortgage.

SOME banks, however, if you have ABSOLUTELY NO credit history, will do what's called full, or traditional underwriting.

Traditional underwriting is where they actually LOOK at some silly little details like how much you earn, how much you have in savings, and how much down payment you have available.

http://www.churchillmortgage.com/ is an example of a Dave endorsed bank that does traditional underwriting and will lend to you if you are good with money and have no credit history.


Oh, and no you can't build up credit with a checking account. Credit scores are an "I love debt score". If I handed you $1,000,000 today, two things would happen.

1) Your credit score would not change one bit.
2) The cops would arrest you for laundering stolen money.

[McD]

A good bank with good underwriters will accept alternative means of 'credit scores'. Meaning you can get account historys or letters of good standings from your utility companys, etc. to prove that yes you are meeting your obligations with them.

We did this for husband, he had no credit score...he ahd a dash.

[Preston]

The fact that you have no debt and live within your means should speak for itself.

[mateosbaby]

LOL Preston, I just noticed your siggie and how you paid off your debts. That is SO TRUE! I should have done that. Although we paid off the credit card first, and it really is the one I hate the most.