No Credit Mortgage - Are the Low Mortgage Rates for This?

Getting a no credit mortgage is very hard to do but not impossible.  Having no credit means that you are going to be in a very tough position when it comes to your mortgage rate but some people do not care about that at all; they just want to own a home.  Your credit score is the documentation of your spending history and if you have been able to pay off these debts.  If you show that you have done this, mortgage lenders feel that you are much less of a risk to default on your home loan.

By having no credit, mortgage lenders are automatically going to think the worst because you have no spending history at all.  You are very new to the idea of paying bills and this is likely to cause you to miss payments or not even make them at all.  Prior to 2006, there were many lenders out there who would let almost anyone borrow money.  Well, we can suffice it to say that most of these lenders no longer exist.  By not being strict in their lending practices they basically went under.

There are companies out there who specialize in giving no credit mortgages but watch out for the fees and expenses. Most of these businesses demand a ton of money up front and it might end up costing you several thousand dollars just to get your mortgage completed.  Compare this to a few hundred for most mortgages and you realize you are throwing quite a bit of money down the drain.