No Credit Score Mortgage — Qualify on Your Equity, Not Your Credit

Your Answer Right Here

What Is a No Credit Score Mortgage?

A no credit score mortgage qualifies you on the equity in the home instead of your credit report or your income. There’s no minimum score, and you don’t need a score at all. Nobody asks for tax returns, pay stubs, or a letter from an employer, and there’s no debt-to-income ratio to clear. The lender wants a large down payment or a lot of equity: in New Jersey, Connecticut, and Florida the loan tops out at 50% of the home’s value, or 55% on loans from $300,000 to $1,500,000. Florida condos stop at 50%.

That’s the trade. You borrow less against the house, and in return a bankruptcy you came out of yesterday, a credit file too thin to score, or income you can’t document doesn’t stop the loan. It works on a home you live in or a second home. For a rental, look at DSCR loans instead.

The Rules

No Credit Score Mortgage Requirements

These are the limits in the three states where we lend.

The value used is the lower of the purchase price and the appraisal. If the appraiser marks the area as a declining market, another 5% comes off the maximum. Any second mortgage has to come from an institution; a seller can’t carry back a note.

In our states, the $150,000 equity rule never ends up deciding anything. The smallest loan is $250,000 at 50%, which already means a home worth at least $500,000 with $250,000 of equity left over. In practice, the 50% cap and the minimum loan are what you’ll run into, and together they make this a program for homes worth roughly half a million dollars and up. In Connecticut the minimum loan is higher, so the floor is too.

Who It Fits

Who This Program Fits

It fits people who own a home outright or close to it and have something on paper in the way, usually one of these:

• A recent bankruptcy. The program lends one day after you’re out of bankruptcy. An FHA loan generally wants two years after a Chapter 7 discharge; our FHA bankruptcy guide has the details if you can wait.
• No credit file, or one too thin to score. There’s no minimum number of tradelines either.
• Income that won’t document. You’re retired and living on savings, between jobs, or self-employed with returns that don’t tell the story.
• Old collections and charge-offs. You don’t have to pay them off to close.
• IRS debt. It can be paid off out of the loan at closing.

Judgments and liens are different. Any that show up on your credit report, the fraud report, or the title search have to be paid before or at closing, though the loan proceeds can pay them.

Bankruptcy and Foreclosure

How a No Credit Score Mortgage Handles Bankruptcy and Foreclosure

The program isn’t built to rescue a house that’s already in foreclosure. If you’re refinancing, the lender also looks at that mortgage’s recent payment history. If you’re a month or two behind and the equity is there, call now rather than after the next missed payment.

The Catch

What It Costs You

On a purchase you’re putting half the price down, or 45% if the loan falls between $300,000 and $1,500,000. On a refinance you keep at least half the home’s value as equity, or 45% at the 55% limit. That’s the real cost, and it’s why the program doesn’t need your score.

The rest is smaller but worth knowing before you apply:

• The rate is non-QM pricing, set by the equity and the loan size. Expect it above what a conventional loan pays a borrower with good credit.
• Every loan is a 30-year fixed, with no adjustable or interest-only option.
• Every appraisal gets a second-level review, whatever its automated risk score.
• Funds to close need 30 days of statements. Business accounts count only if you own 100% of the business.
• At least one borrower completes homeownership counseling before closing. The CFPB’s counselor search lists HUD-approved agencies by zip code.

The seller can pay up to 9% of the price toward your costs. Gift money can cover the down payment, though not the reserves, and a family member can give you equity in the house you’re buying from them.

If your score is 640 or higher, our No Income Verification Mortgage also skips the income documents and lends a larger share of the value.

Properties and Borrowers

What You Can Buy or Refinance

Single-family homes, including one with an accessory dwelling unit, townhomes, and homes in a planned development all qualify. So do two- to four-family houses and mixed-use buildings that meet Fannie Mae’s rules. Warrantable condos are eligible, and non-warrantable condos are eligible under the program’s guidelines. Land is fine up to 10 acres, as long as the appraisal doesn’t call the property rural.

You can use it to buy, to refinance into a lower rate or a new term, or to take cash out. There’s no separate limit on the cash you take; the 50% or 55% cap is the limit.

U.S. citizens and permanent residents qualify, and so do non-permanent residents with U.S. credit and an acceptable visa, and borrowers with an ITIN. Foreign nationals can use it for a second home only.

Where We Lend

In New Jersey, Connecticut, and Florida

The rules above apply in all three states, with a few local differences:

• New Jersey: the 50% and 55% limits as shown. See our New Jersey guide for worked examples.
• Connecticut: the minimum loan is $417,001, so the home has to be worth about $758,200 or more. Our Connecticut guide runs the numbers.
• Florida: condos are capped at 50%, even in the 55% loan range. Our Florida guide covers condos and second homes.

Before You Start

What Happens After You Apply

1. You send the application

   A few minutes online. No documents at this stage.

2. A licensed loan officer calls you

   Someone on our team covering your state.

3. We ask for documents and pull credit

   Only once you have decided to move forward.

4. You get an approval to shop with

   Typically back within the hour.

What Clients Say

Real Reviews From Our Clients

Here’s what a few clients said about working with Mortgage-World.com on their home loan approvals.

Read more from our clients: Read More Reviews →

Common Questions Answered

Frequently Asked Questions — No Credit Score Mortgage

Related Resources

Not Sure This Is the Right Program?