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FHA Loan Reader Questions: No Credit History?

019A reader asks, “I had a question about buying a home with no credit. My partner has had a very good job for over 2 years now and I am a stay at home mom. Our problem is that she has no credit it’s not bad credit it’s no credit history.”

“I, on the other hand have some credit but since I stay home that wouldn’t be sufficient. She has records of paying her bills on time and rent on time. Would we be able to qualify for a home loan with that information and no credit?”

The answer to this question is found in the FHA loan rules as published in HUD 4155.1 Chapter Four Section C, which states the following:

“The lack of a credit history, or the borrower’s decision to not use credit, may not be used as the basis for rejecting the loan application.” That is good news for anyone in the same situation as the reader. What else does the FHA loan rulebook say about non-traditional or non-existent credit history?

“Some prospective borrowers may not have an established credit history. For these borrowers, including those who do not use traditional credit, the lender must obtain a non-traditional merged credit report (NTMCR) from a credit reporting company, or develop a credit history from

• utility payment records
• rental payments
• automobile insurance payments, and
• other means of direct access from the credit provider”

Your loan officer can provide you with more details on what may be required at application time in order to verify income, payment history and other factors. But in general, the FHA does have a pathway to an FHA mortgage loan for such borrowers, provided they meet other FHA loan requirements the same as any applicant.

Do you have questions about FHA home loans? Ask us in the comments section.

Joe Wallace - Staff Writer

By Joe Wallace

May 29, 2013

Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for for (8) years and is currently the Associate Editor for

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About was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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