These days, the mortgage loan industry has
changed a lot and as a result, people without a credit score are also
qualifying for these loans successfully. The only issue with no credit record
is that in this case the lender fails to decide whether the loan borrower is
responsible enough or not. There are a number of steps that can actually assist
people to deal with the issue of no
credit check refinance mortgage.
- Alternative
methods of credit: Having no credit score doesn’t mean
that you are unable to pay your bills. These days, a number of lenders
allow the loan borrowers to submit their utility bills to show the record
of making payments on time.
- Down
payment: One of the best ways to get the loan application
approved is to offer the lender a minimum 20% of the total purchase price
of the home as down payment. The more amounts one will be able to pay, the
less risky the person will be counted on as a loan borrower. Some of the
states also offer programs to help property buyers with the down payment
in case they have no credit score.
- Government baked mortgage: At the present time, the FHA has introduced a number of home loan programs for people with no credit score or no credit score mortgage loans. The basic requirement to get this loan is to have a record to two years of increasing or steady income and one mortgage payment, which is not more than 30% of the before tax income of the applicant.
- Cosigner: Ask somebody with an established credit score to cosign for the mortgage. The cosigners might not be helpful choice for people with bad credit score to get home loans, but they can help people, looking for mortgage with no credit history. But one thing you need to keep in mind that while talking to the cosigner, remind the person that the cosigned loan would appear on his/her credit score and this could affect the person’s ability to receive credit in future.
To know more about home mortgage with no
credit check, you can consider visiting www.mortgagerefinanc101.com
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