How to Get a Home Loan with No Credit?

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    KikoffKikoff
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    #1024
    KikoffKikoff
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    It is pretty difficult to get a home loan or even any type of loan without a credit history. Lenders rely on your credit history to assess whether you have a reliable borrowing and responsible financial history. However, if you find yourself in this situation (for ex. if you are an international student or just came to the US), there are still some steps you can take to secure home loans. 

    Options for No Credit History:

    • FHA Loans: The Federal Housing Administration (FHA) are government-backed loans, these loans are designed for individuals with bad credit or for those with no credit history. FHA loans usually have more flexible requirements compared to other types of loans. If you can showcase proof of stable income and a good payment history on other recurring bills such as utility bills or rent, you would be able to qualify for FHA. 
    • Build Alternative Credit: There are alternative methods to build credit, such as building credit using on-time rent payments, utilities, and other types of recurring payments. Some third-party apps allow you to report your past recurring payment histories to build credit. You can also directly showcase these bills to some lenders. 
    • Use a Co-Signer: Find and use a co-signer with a strong credit history and high credit score to improve your chances of securing a loan. However, note that the co-signer will be responsible for your loan if it is not paid on time. 
    • Make a Larger Down Payment: Putting down a larger down payment also shows the lender more reliability. A larger down payment reduces the amount that you have to borrow and shows the lender that you are committed to purchasing the home. 

    Want to Start Building Credit Fast & Affordably? Use Kikoff!

    Kikoff is an easy and affordable way to start building your credit, on average, you can grow +28pt* in a month! Starting from $5 a month, you can easily grow your credit with Kikoff, with no credit checks, no hidden fees, and no interest. Sign up in minutes and start growing your credit now for better home loan terms and interest rates!

    Conclusion 

    While it’s hard to secure a home loan with no credit, it is not impossible. There are alternative loan options available for borrowers such as the FHA loan, however, these are usually not ideal options due to bad terms and high interest rates. It is still important to establish a good credit score to secure better deal loans. Start using Kikoff to build your credit so you can secure more loans and better deals in the future!

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The information provided in this blog post is meant for informational purposes only and does not constitute financial advice. Kikoff Inc. is a financial technology company and not a bank. The Kikoff Secured Credit Card is issued by Coastal Community Bank, Member FDIC. Terms and conditions apply & individual results may vary. Make consistent on-time payments to maximize credit building potential.  Credit factors outside Kikoff, like other account balances or delinquencies, can have an impact on credit building progress.  Subject to approval via identity verifications and subject to terms and conditions. Kikoff Credit Account reported line of credit intended exclusively for credit building purposes & can be used to finance the purchase of monthly Credit Service plans and/or digital educational material via the Kikoff Store. For more information, visit our Terms and Conditions and Privacy Policy. We report to the major credit bureaus: Equifax, Experian, and TransUnion. Features, tradelines, bureau reporting, & pricing may vary depending on plan purchased. This post may contain marketing messages and advertisements in compliance with the CAN-SPAM Act. Please refer to our Secured Card and Credit Account Terms for detailed product disclaimers.

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