But we will tell you not to bow at the altar of the “Great FICO.” In other words, don’t worship your credit score—because you can live without it. 4 Minute Read The dreaded FICO score. It’s that number that’s associated with every credit report. We all know about it—most people have one—but what does the credit score really mean? Actually, no, it isn’t. You can get a mortgage without a credit score. Isn’t this magic number your key to the world of mortgages and homeownership? These are just regularly recurring expenses such as rent, electric bills, water bills, cell phones, etc. You May Also Like Not every lender is going to do manual underwriting—which is basically when they use a little common sense and look at factors like your income and not just your credit score.
Have a strong employment history and personal income to support the loan. Nope. Does it factor in your savings accounts, net worth—anything other than debt? You Can Live Without It! Now don’t go out and trash your credit score and say “Dave Ramsey told me to!” That’s not what we’re saying. Specifically, you must: Put at least 20% down on your home. Dave’s best-selling book The Total Money Makeover is a great place to start. Even if you have a zero score, the old history is still there and impacts the loan decision. If you have an old history of late or missing payments, then you could have some problems.
Demonstrate 4–6 trade lines that span 18–24 months. Now, if you are on Dave’s plan—paying off old debt and not opening any new debt—then you’ll eventually reach the point of being debt-free. At first, you’ll pay off credit cards, car and student loans and things like that. All it tells you is whether you are good at borrowing money and paying it back. Like it or not, your credit score is not an indicator of winning financially. Getting a Mortgage Without a Credit Score Let’s go back a few years, though—back before you paid off that mortgage.