Have you ever wondered how to get a mortgage without a credit score? If you’re in decent financial shape, the short answer is to use manual underwriting.
Not many people are familiar with the process of qualifying for a mortgage using manual underwriting, so I’m happy to share Jessica’s story below.
(She got a manually underwritten mortgage when she bought her home earlier this year, and she’ll be telling you all about how that worked shortly.)
But first, let’s get an important term out of the way.
Manual underwriting means someone individually figures out the level of risk involved with giving you a mortgage.
Instead of software automatically checking your credit and using an algorithm to decide whether or not you’re a good risk, a person does so. (Using information you provide to show you’re likely to repay the loan.)
Manual underwriting can be good for people who:
- have what’s known as a “thin” credit file
- don’t have a score because they don’t have debt (woohoo!)
- have a somewhat recent bankruptcy or foreclosure
Now on to Jessica’s article, which is all about her experience with convincing her mortgage broker to go the manually underwritten loan route.