The Challenge of Getting a Mortgage, When Only One Person has Credit Scores

Received a call from a couple that had been referred to me by their credit union. They told me, the credit union could not help them as one of them didn’t have any credit scores.

In my discussion with them, we needed both incomes to make the mortgage work. This unmarried couple wanted to purchase a home together. They explained, he paid cash for everything. He did have a cell phone, utilities and car insurance in his name, but nothing else.

Her credit was very good, but didn’t make the income that he did. The rent was paid by her, out of her checking account, which was great.

The majority of lenders would not do this mortgage, but fortunately I have two lenders that will do FHA mortgages with no credit scores, as long as the borrower has 3 different alternative items of credit, which he did.

I got the preapproval out to them and they are now house hunting. They told me, they hadn’t wanted to look at any homes as yet and were not working with a Realtor. I referred them to a Realtor in the area they would be looking and a home inspector. They will make great homeowners.