Low or No Credit Score? You May Still Qualify for a Mortgage

A Big Change That Could Help You Qualify For A Home Loan

Have you ever been told you couldn’t get a conventional loan mortgage because of your credit score — or because you didn’t have a credit score at all?

That used to be a deal-breaker. But, as of November 16, 2025, that’s changed.

New rules now allow lenders to look at more than just your credit score when deciding if you qualify for a home loan. If you pay your rent, phone, or utility bills on time — even if you’ve never had a credit card — While some qualifications still apply, you may still be able to get approved.

Who This Helps

Millions of people in the U.S. don’t have a credit score — not because they’re risky, but because they’ve never used credit cards or had a loan. This includes:

• Young adults just starting out
• Renters who consistently pay on time
• People who avoid credit and prefer to use cash or debit cards

This rule change gives these people a fair shot at getting approved by allowing lenders to consider how those individuals manage real-life expenses — such as rent, phone, and utility payments — in addition to, or even in place of, their credit score.

It may also help if:

• Your credit score is slightly under 620
• You’ve had past credit challenges, but are now on track
• You’ve been denied before due to your credit score alone

Ask yourself:

• Have I been paying rent, phone, or utility bills on time?
• Have I been told that I don’t qualify for a conventional home loan due to my credit score?
• Do I have little or no credit history?

If you answered yes to any of these questions, even though some qualifications still apply, this change may be beneficial for you and help you get into your dream home!

Why the Change?

This change is about more than rules — it’s about access.

For years, credit scores have been a gatekeeper to homeownership for conventional loan mortgages. Fannie Mae, a government-backed organization that sets rules for many home loans, previously required a minimum credit score (usually 620) to approve certain loans. And while credit is important, it doesn’t tell the whole story of how someone manages their finances.

While some qualifications still apply, this updated approach makes the system more inclusive and more accurate — giving responsible people a chance to qualify based on how they actually live and pay their bills, not just whether they’ve used a credit card or paid off a loan.

This is a major step forward for people who’ve been locked out of homeownership for reasons that don’t reflect how financially responsible they really are.

This change also supports:

• Helping more people qualify
• Supporting fairer lending practices
• Making mortgage approvals more inclusive
• Bringing more first-time buyers into the market
• Helping renters transition into homeownership

Frequently Asked Questions

Do I need a credit score to get a mortgage?

Not necessarily — not anymore. As of November 16, 2025, some loan programs will allow you to qualify without a credit score, based on your other financial habits. Qualifications still apply.

What if I’ve never had a credit card or loan?

That’s okay. If you’ve been paying bills like rent or utilities on time, lenders may be able to use that information instead. Loan requirements vary.

What counts as “nontraditional credit”?

Things like:

• Rent payments
• Utility bills (gas, water, electric)
• Cell phone bills
• Car insurance or streaming services

Is this available for all loans?

Not every loan, but many popular loan types will follow these updated guidelines. A loan officer can help you see which loan programs fit your financial goals and circumstances.

Will this affect my interest rate?

Rates depend on your complete financial picture. This program enables lenders to view the entire picture. Qualifications still apply.

The Bottom Line

You’ve been told that only your credit score matters. And in the past, that was mostly true.

But now, for some loans, what matters even more is how you live, how financially responsible you are, and how you pay your everyday bills.

Qualifications still apply, but this change could be your chance to finally qualify for a home loan — even if you’ve been told “no” for a conventional home loan before.

Ready to Find Out Where You Stand?

Get pre-qualified today — it’s quick and easy with ReadyLoan, our online and mobile app.

Have questions? Talk to a friendly loan officer (no pressure, no obligation).

All loans are subject to approval. Not all applicants will qualify. Loan terms, rates, and guidelines may vary. Qualifications still apply.