FHA Loan Without Any Credit

6 Replies

Hi,

I just graduated college and am looking to buy my first investment property, probably a single family, as soon as possible. I have a well-paying job lined up that I start in early June. I'm very interested in either an FHA 203(b) or 203(k) loan. Fortunately, I've never had to take out student loans or apply for a credit card in the past; unfortunately, this leaves me in the position of having zero credit whatsoever, it's not bad, it's just that I don't have any at all.

Is it possible to get any type of FHA loan without credit? I'm wondering if there's some way I can prove employment and the ability to pay the loan off with my salary.

Thanks in advanced!

I would go talk to local credit unions and see what programs they are offering.  They may have something special that is a low down payment option and maybe more willing to work with you.  I suggest putting together a packet/portfolio of your financial history that shows your smart financial desicions to present to potential leaders. It also may be more likely to happen with a multi since additional income would be obtainable.  Hope you find a way to get your financing.  Let us know if you and what you did to get it. Have a great day. 

I had no debt of any kind when I got my first mortgage but the difference with me is I had a credit card I used for 10ish months before buying the first rental. You could do this and that likely solves your problem, if this is even a problem to begin with.

Talk to a loan officer and see what they say

@Mitchell Abel FHA loans ABSOLUTELY lend to people with no credit history. Having no history is not a deal killer....having BAD history is. FHA has an entire section in their guidelines on how to work with someone like you. They will ask for telephone bills, rental history, utility bills, etc. to show you make your payments on time. So be prepared for that type of a discussion. The tricky thing is that banks aren't required to follow this FHA guideline.  But most will.  And there are some banks that don't even have FHA loans at all.  But most do.  So call around and interview some lenders.  Treat is like a 2nd job interview, except you are the one hiring!  And you aren't hiring unless someone can give you the right information.  Again, this is entirely possible.  Good luck!

@Andrew Postell is absolutely right. They will be requiring you show them proof of “alternative credit” such as utility bills, rental payments, even education costs sometimes. Anything that would be a reoccurring charge that proves you have a good history of paying what is required of you.