How — To Buy Your First Home With No Credit

If you lack a traditional credit score (often called "credit invisible"), these loan types are your best paths to homeownership:

As of 2025, Fannie Mae and Freddie Mac guidelines allow for manual underwriting without a minimum credit score. However, these usually require a larger down payment (often 10%) and a lower debt-to-income (DTI) ratio (typically 36% or less). 2. The Manual Underwriting Process how to buy your first home with no credit

If you are a veteran or active-duty service member, the VA does not technically set a minimum credit score. Lenders can use alternative credit data to qualify you. If you lack a traditional credit score (often

Backed by the Federal Housing Administration, these are very popular for first-time buyers. They allow for nontraditional credit references (like rent and utility history) to establish payment reliability. The Manual Underwriting Process If you are a

Geared toward buyers in designated rural areas, the USDA Section 502 program has no hard credit score requirement, focusing instead on your demonstrated ability to manage debt.

Cancelled checks or a landlord's verification showing 12 months of on-time payments.