Buying a House with No Credit

buying a house with no credit

By Zina Kumok, Financial Health Counselor, Credit Counselor

If you listen to certain financial experts, it’s easy to get the wrong idea about credit. Many money gurus – most notably Dave Ramsey – advise consumers to avoid credit cards and other forms of personal debt.

That might seem responsible enough, until you start shopping for a mortgage with no credit history and have to overcome that barrier.

Thankfully, it’s still possible, though not necessarily easy, for someone without credit to secure a mortgage and buy a house.

Here’s what you need to know.

In this article

What does no credit mean?

In a world of student loans, auto loans and credit cards, it’s hard to imagine not having any debt. But it is possible to live with no credit, especially if you’re young and have avoided loans your whole life.

If you’re debt-free and use debit cards instead of credit

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Australian Home Prices May Rebound on Low Rates, Easy Credit

(Bloomberg) — Australian home prices may have bottomed out and could be set to rise through the end of the year on the back of lower interest rates and easier credit, according to Bloomberg Intelligence.



a house with trees in the background: Residential properties stand along a street in Brisbane, Australia, on Tuesday, May 7, 2019. Australian central bank chief Philip Lowe dashed expectations of an interest-rate cut, looking through recent weakness in inflation to hitch the policy outlook to a labor market that he says remains strong.


© Bloomberg
Residential properties stand along a street in Brisbane, Australia, on Tuesday, May 7, 2019. Australian central bank chief Philip Lowe dashed expectations of an interest-rate cut, looking through recent weakness in inflation to hitch the policy outlook to a labor market that he says remains strong.

Property prices have fallen just 3% since the Covid-19 crisis began, defying concern of a steeper slide. A plan to ease responsible-lending rules and mounting speculation for further loosening of monetary policy in coming months may unleash a wave of borrowing, Bloomberg Intelligence analyst Mohsen Crofts said in a report Wednesday.

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What Bloomberg Intelligence says:

Home prices may have reached a near-term bottom in most

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What’s the Credit Score Needed to Buy a House in 2020?

Credit scores typically range from 300 to 850, and borrowers within a certain range can qualify for mortgage loans. While you don’t need a perfect 850 credit score to get the best mortgage rates, there are general credit score requirements you will need to meet in order to take out a mortgage.

Prospective home buyers should aim to have credit scores of 760 or greater to qualify for the best interest rates on mortgages.

However, the minimum credit score requirements vary based on the type of loan you take out and who insures the loan. Of our list below, conventional and jumbo loans aren’t insured by the government and often have higher credit score requirements compared to government-backed loans, like VA loans.

Having a higher credit score makes a big difference in the amount of money you pay over the course of a loan. Borrowers with scores in the higher

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