For a long time now, people without credit have had a really hard time getting a mortgage. FHA, USDA & VA loans were the only real options. Conventional (Fannie & Freddie) loans were all but out of reach if you did not have a significant ‘traditional’ credit profile.
That all ends June 25th 2016. Fannie Mae is now building into their automated underwriting engine (Desktop Underwriter) the ability for people with blank credit to receive an automated mortgage loan approval!! You no longer need to be in debt and pay ridiculous interest rates in order to qualify for a Conventional mortgage loan.
The credit qualification requirements are pretty fair in my opinion:
1) Must be to purchase or refinance a one unit, owner occupied home.
2) Must be a fixed rate loan.
3) A minimum 10% down payment or equity is required.
4) Applicants must evidence a 12 month housing payment history with a Management Company verification or 12 canceled checks.
[Insider Advice: Pay rent with a personal check or bank draft and not money orders or cash]
5) Applicants must also evidence one additional monthly payment account such as phone, power, TV, etc…
6) Your new home payment cannot exceed 40% of your gross income.
Please take a number, we can start processing your applications after June 1st with approvals issued on June 27th.