Kentucky Mortgage Approval With No Credit Score
A simple plan for FHA, VA, USDA, and Conventional loans. If you have no credit score, you can still buy a home in Kentucky—here is how it works.
Why this guide matters
You can buy a home in Kentucky even if you do not have a credit score. I help first‑time buyers with no scores every week. This site has deep how‑to guides on Kentucky FHA, VA, USDA, and Conventional loans. That gives you simple steps, clear rules, and fewer surprises. In short: this is our specialty, and we do it a lot.
See related guides: Kentucky FHA Loans · Kentucky VA Loans · USDA Rural Housing Kentucky · KHC Down Payment Assistance
Quick Start: What to do first
Map your program
- Use VA if you are eligible (often $0 down).
- Use USDA if the home is in an eligible rural area (often $0 down).
- Use FHA if you need flexible credit rules.
- Use Conventional when AUS approves, often with a co‑borrower who has a score.
Prove your payment history
Gather 12 months of on‑time payments for rent and 2–3 other bills (utilities, phone, insurance, daycare). Bank statements, invoices, or letters from the company work.
Why Kentucky Homebuyers Trust Us
Program snapshot (side‑by‑side)
| Program | Purchases vs. Refis | Approval Method | DTI Rules | Tradelines & Rent | Notes |
|---|---|---|---|---|---|
| VA | Purchases only when no score is involved | Manual underwriting allowed up to 50% DTI with residual income. If DTI > 41%, meet 120% of VA residual income. | Up to 50% with strong residual income | 3 non‑traditional tradelines with 12 months on‑time history. Rent‑free letter if living rent‑free. | No formal loan cap with full entitlement; $0 down for eligible Veterans. |
| FHA | Purchases only when a borrower has no score | Even if AUS is Approve/Eligible, downgrade to manual when any borrower has no score. | All borrowers no score: 31/43. If one borrower has ≥580 and the other no score: up to 40/50 with compensating factors. | 3 non‑traditional tradelines per no‑score borrower; rent‑free letter if applicable. | HUD REO $100 down, escrow holdbacks, 203(h) disaster, Condo Single‑Unit Approvals allowed. |
| Conventional | Purchases and refis as AUS permits | No‑score co‑borrowers allowed with DU/LPA Approve/Accept. Run both and follow the stronger findings. | Per AUS | If scored borrower provides >50% of income: no extra NTCs. If no‑score borrower provides >50%: need 2 NTCs + 12‑month rent. | Pricing may be based on the scored borrower's profile (e.g., 740) when paired with a no‑score co‑borrower. |
| USDA | Purchases | Run GUS. Enter 100 as the credit score for a no‑score borrower. | Typical program ratios 29/41 unless GUS allows otherwise. | If 12‑month rent is verified: add 1 extra NTC. If no rent: provide 3 NTCs. | $0 down for eligible rural properties. Check USDA property eligibility. |
VA with no score
What to expect
- Manual underwriting allowed up to 50% DTI with strong residual income.
- 3 non‑traditional tradelines with 12 month on‑time history for any no‑score borrower.
- Rent‑free letter if you live rent‑free.
- $0 down available for eligible Veterans with entitlement.
Helpful link: VA Home Loan Program
FHA with no score
What to expect
- When any borrower has no score, we must manually underwrite, even if AUS says Approve/Eligible.
- DTI caps: 31/43 when all borrowers have no score.
- If one borrower has a 580+ score and the other has no score, DTI can stretch to 40/50 with strong compensating factors.
- 3 non‑traditional tradelines with 12 months of on‑time payments; rent‑free letter when applicable.
- Special cases allowed: HUD REO $100 down, escrow holdbacks, 203(h) disaster relief, Condo Single‑Unit Approvals.
Helpful link: FHA for Homebuyers
Conventional with no score
What to expect
- We run DU (Fannie Mae) and LPA (Freddie Mac). If we receive Approve/Accept findings, a no‑score co‑borrower is allowed.
- Pricing may be based on the scored borrower's credit when paired with a no‑score co‑borrower.
- If the scored borrower provides more than 50% of qualifying income: no extra NTCs needed.
- If the no‑score borrower provides more than 50%: provide 2 non‑traditional tradelines plus 12‑month rent verification.
Helpful links: Fannie Mae Single‑Family · Freddie Mac Single‑Family
USDA with no score
What to expect
- We run GUS. For a borrower with no score, we enter 100 as the score value in the system.
- Typical USDA ratios are 29/41, but GUS may allow exceptions.
- If 12‑month rent is verified: provide rent + 1 extra non‑traditional tradeline. If no rent: provide 3 non‑traditional tradelines.
- $0 down for eligible rural properties. Check your address on the USDA map.
Helpful link: USDA Eligibility
Non‑traditional credit examples
Commonly Accepted
- Rent or mortgage (VOR)
- Utilities: electric, water, gas
- Phone or internet
- Auto or renters insurance
Sometimes Accepted
- Daycare or tuition
- Streaming or subscription bills
- Medical payment plans
- Gym membership with monthly billing
Documents checklist
Identity & income
- Driver's license and Social Security number
- 30 days of pay stubs and last 2 years W‑2s
- Last 2 months of bank statements
- Proof of other income (if any)
Non‑traditional credit
- 12‑month rent verification or rent‑free letter
- 2–3 other bills with 12 months of on‑time payments
- Invoices or letters from each company
- Matching bank statements when possible
FAQs
No. It fits many buyers who lack a traditional score. Each program has extra rules. We will confirm what works for you.
Sometimes, but not always. Opening a new card right before buying a home can cause delays or lower your approval odds. Ask first.
Often yes. Many Kentucky buyers pair these loans with KHC Down Payment Assistance. We will review your eligibility.
Ready to get pre‑approved?
We specialize in no‑score mortgage approvals in Kentucky across FHA, VA, USDA, and Conventional. I will map your plan, list the exact documents you need, and show you the payment range you can expect.
Equal Housing Lender. EVO Mortgage Company NMLS #1738461 |Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA Joel Lobb NMLS #57916. Not a commitment to lend. All loans subject to credit approval, property approval, program availability, and change without notice. AUS findings and agency handbooks (HUD/FHA, VA, USDA, Fannie Mae, Freddie Mac) – as well as investor overlays – control. Some features (such as no‑score refinances) may be unavailable. Always verify property eligibility and income limits for USDA and KHC programs.
Helpful official resources: HUD/FHA · VA · USDA · Fannie Mae · Freddie Mac
Kentucky Mortgage Approval With No Credit Score
A simple plan for FHA, VA, USDA, and Conventional loans. If you have no credit score, you can still buy a home in Kentucky—here is how it works.
Author: Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA · NMLS #57916 · Company NMLS #1738461 · Louisville, KY Equal Housing Lender
This is not a commitment to lend. All loans subject to credit approval, underwriting, property eligibility, and program guidelines. Not affiliated with HUD, VA, USDA, Fannie Mae, or Freddie Mac. | Disclosures
