No Credit Mortgage – Can You Really Get a Mortgage with No Credit?
Posted on | August 27, 2009 | No Comments
Getting a no credit mortgage is something that is not easy but it can be done. The idea of having no credit is quite scary to mortgage lenders. The interest rate on a mortgage loan is determined by our credit score. Your credit score is a history of your financial life which proves how likely or unlikely you are to default on a home loan or any loan in general. If you have made no big financial decisions in your life, hence the reason for no credit, mortgage lenders are going to worry greatly that you will default.
With this in mind, please realize that if you do apply for a no credit mortgage, you are going to see mortgage interest rates that are much higher than anything you see advertised. Many mortgage lenders are advertising mortgage rates at or under 5%. Make no mistake about it, if you have no credit, you are not getting anything near mortgage rates this low. Unless you find someone to get the mortgage for you, you can forget about those types of low interest rates.
Even though you are not going to get low interest rates, it does not mean that you cannot get a mortgage at all. One of the great things about America is that almost anyone can life out the American dream of owning a home. You might be paying interest for the next fifteen years, but you have the opportunity to own a home through a no credit mortgage. One bit of advice is that if you have ANY credit at all, that is better than no credit.
We often hear of borrowers that want to hide their credit because they think it is so bad. There is nothing worse than no credit, so make sure to let the lender know if you have any credit at all. It is quite hard to hide your credit score but some borrowers feel they should do it; please don’t. With that said, the only way to find out what interest rate you are going to get on a no credit mortgage or a bad credit mortgage is to get out there and contact some of the lenders that offer this service.
You should have little trouble finding companies that are willing to help you with a bad credit or no credit mortgage. This industry has greatly grown over the last few years and there are many financial institutions that would love to have your business. It would actually be a good idea to shop around and see which bad credit lender actually offers you the lowest rate with the most incentives.
Author: Mike Garner
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