No credit score? There’s a new automated home loan option for you

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A man in a suit sits at a table and holds out the palm of his hand. On top of his outstretching palm is drawn a white outline of a house.

03/24/2017 | Author: Michael Schrantz

Not having enough credit history for a credit score doesn't necessarily mean you must go through a drawn-out manual underwriting process to get a home loan. If you have a history of making housing payments on time and references, you could benefit from a new automated process from Freddie Mac, a quasi-public agency that purchases mortgages.

Starting in June, borrowers without credit scores can see if they're eligible for purchase mortgages or no-cash-out refinance transactions on one-unit owner-occupied homes. Lenders will be able to use Freddie Mac's automated assessments to quickly approve your loan with greater confidence that Freddie Mac will purchase it. Loans will still be evaluated against Freddie Mac's credit requirements, but the automated process should allow lenders to more efficiently serve borrowers.

Categories: Buyers
Tags: buyers, buying, homebuyers, mortgage

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