Buy a House With No Credit?

Next Steps:

Explore More Shows from Ramsey Network:

Ramsey Solutions Privacy Policy

Product Links:

[jojojordan]

Churchhill mortgage gave us and our parents crazy estimates. We ended up going with regular lenders with 2-3% better than Churchhill.

[ljss]

"Buy a house in cash." 97% of California just LOLed.

[shawns]

Some people at Churchill do not necessarily agree with Dave’s philosophy on no credit I discovered recently

[ghfan]

The issue I’ve seen from some people who have attempted the manual underwriting is that having no credit severely limits the options of where you can get a mortgage. As with anything, the less competition the higher the price. Lenders are less incentivized to give competitive rates if there’s no competition. With good credit, you can apply to 3-5 different lenders and the best to the worst interest can vary up to 1.25%.

[danielcole]

Yes, however rececntly ive learned car insurance, my renters and homeowners insurance, and the amount i need down on an apartment are all credit based. I recently raised my credit by paying things off before the statement, and kept at it. Now have a decent score. It drop not only my car insurance but my renters insurance as well.

Im gonna be honest, i hate credit and the idea of debt. Its only inflating everything and creating higher cost of operation. But since 99% of my vitals react to credit i work with what i have. My high credit score has afforded me to save on average 20% on monthly reacuring bills. Which i put into either high yeild savings or pay off more ahead of time.

[varvaracoronado]

We bought a house this week without a credit score, with Churchill. It is possible. But it was painful to pay extra on originating fee (which sounded like punishment for not having a credit score 😒). But still, it is possible. Our underwriting process took a couple of weeks. Once our offer was accepted we were able to close in 2, 5 weeks 😊

[Muller_Andr]

Facing a financial crunch, especially as seniors, we're pondering the idea of cashing in on our home equity. The question is, should we invest the money, rent, or relocate?

[butlerbees]

What’s interesting is that all of the requirements listed by Dave used to be standard in getting a mortgage. Maybe it’s just a coincidence that the housing market inflated so much during the same period that requirements were relaxed 🤔

[Andrew-itfb]

Saying you get the same rate you would with a high credit score is simply a lie.

[Jum]

Manual underwriting is what most of Europe does. If you are employed and show the bank how much you earned in the last period of time (6-12months depending on the bank), you get a mortgage, no questions asked. It's actually if you keep maxing out your credit card, is when you get declined.

[zacharyzimmerman]

Heres the thing though. Once you put yourself in a situation where there are only a few mortgage companies that will offer one, your rate is going up. It just is.

[GregFirehawk]

Buying the house in all cash was an idea that used to really appeal to me when I was younger. I figured I'd just save for 10 years and own it outright instead of paying it off for 30 years. Then I remembered inflation exists, the recent recession was a great reminder. If you lock in a mortgage at an interest beneath the inflation rate, then you're almost printing money every year, because now your cash can go to investments like a stock portfolio which will appreciate at the inflation rate. This basically means your wealth is growing faster then your debt, so you win at the banks expense. That's why I firmly believe mortgages are absolutely brilliant and everyone should have one provided they actually understand finances. If you had a mortgage rate today of even 6% you'd be golden for the next couple years until the economy goes back to normal and inflation rates go back down, at which point you can refinance. Those people who locked in a mortgage years ago at like 3%, they're probably feeling rich as hell right now

[weirdthings]

Here in Australia, you can’t get a house below 1 million USD.

[richsamuel]

You can also put just your recurring utility payments on a CC then pay that off every month and not worry about manual underwriting. So that way you have the option to shop multiple lenders. And 'when lenders compete, you win.'

[superbear]

manual underwriting is common, take jumbo loans, or example, or a loan to a preson with a bankruptcy in their background. Those loans will be reviewed by a person, rather than the computer - very common. (Ramsey just wanted to plug the company he refers people to, without disclosing whether or not he has an economic relationship with that firm.)

[josephbrock]

Not true with Churchill mortgage. I tried everything he said and still ended up only getting approved for only like $120, 000

[hudsonmilbank]

Try to get a utility set up in some states with no credit. Try to get a job without a credit report.

[jordanmanley]

Buying a house in cash is not possible for normal people. Renting a decent place, at least where I live, often requires a good credit score.

[frankm]

43 zero credit never had a loan credit card vehicle payment nothing been a cash guy since forever

[bryan_witha_whyy]

I’m starting to wonder if the only reason Dave says stick to manual underwriting is because he gets a big cut of one of the few companies that does it.

Follow the money and see where it goes. Always.