Am I eligible for FHA mortgage loan if i have no credit score?

SELF EMPLOYED MORTGAGE LENDERS QUESTIONS AND ANSWERSCategory: FHA QuestionsAm I eligible for FHA mortgage loan if i have no credit score?
Thomas Martin Staff asked 7 years ago

Lack of credit a credit score or trades lines or a FHA mortgage applicant’s decision to not use credit may not be used as the sole basis for rejecting an FHA mortgage application. For FHA mortgage applicants without a credit score, the FHA mortgage lender must obtain a Non-Traditional Mortgage Credit Report (NTMCR) from a credit reporting company or independently develop the FHA mortgage applicant’s credit history.

A NTMCR is used to access the credit history of a FHA mortgage applicant who does not have trade references that appear on traditional credit reports and is used as:

  • a substitute for a Tri-Merged Credit Report (TRMCR) or a Residential Mortgage Credit Report (RMCR); or
  • a supplement to a traditional credit report with an insufficient number of trade items.

FHA mortgage lenders may use a NTMCR developed by a credit reporting agency that verifies the following information for all non-traditional credit references:

  • the existence of the credit providers;
  • that the credit was actually extended to the FHA mortgage applicant; and
  • the creditor has a published address or telephone number.

The NTMCR must not include subjective statements such as “satisfactory” or “acceptable,” must be formatted in a similar fashion to traditional references, and provide the:

  • 12-month history of the account;
  • creditor’s name;
  • date of opening;
  • high credit;
  • current status of the account;
  • required monthly payment;
  • unpaid balance; and
  • payment history in the delinquency categories (for example, 0x30 and 0x60)


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To be sufficient to establish credit history, 3 credit references must be used, including at least 1 of the following:

  • rental housing payments (requires independent verification if FHA mortgage applicant is a renter);
  • telephone service; or
  • utility company reference (if not included in rental housing payment), including gas, electricity, water, or television or Internet service.

If the FHA mortgage lenders cannot obtain all three credit references from the list above, the FHA mortgage lenders may use the following sources of unreported recurring debt:

  • insurance premiums not payroll deducted (e.g., medical, auto, life, renter’s insurance);
  • payment made to child care provider businesses that provide such services
  • school tuition;
  • retail store credit cards (department, furniture, appliance stores);
  • rent-to-own (e.g., furniture, appliances);
  • medical bill payments not covered by insurance;
  • personal loan from an individual with repayment terms in writing and cancelled checks to document payments;
  • automobile lease; or
  • 12-month savings history evidenced by regular deposits resulting in an increased balance to the account that:
  1. were made at least quarterly;
    1. were not payroll deducted, and;
    2. caused no insufficient funds (NSF) checks
  2. 12-month history of payment by the FHA mortgage applicant on an account for which the FHA mortgage applicant is an authorized user.


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