Home Loans Without Traditional Credit: What Are Your Options?

If you don’t have a credit score or Social Security number, you might feel like getting a mortgage is out of reach. But the good news is, that’s not true. There are options for people who don’t fit the traditional mold, and with the right lender, homeownership is still possible.

Let’s break it down in plain English.

What is alternative credit?

When lenders talk about credit, they usually mean credit cards, car loans, student loans, or other things that show up on your credit report. But what if you’ve never had any of those? That’s where alternative credit comes in.

Alternative credit looks at other ways you’ve been financially responsible, like:

• Paying rent on time

• Keeping up with utility bills

• Making regular phone or internet payments

• Sending money through consistent remittance transfers

• Paying daycare, insurance, or other monthly expenses

If you’ve been handling these types of payments responsibly, some lenders will count that as proof that you’re a trustworthy borrower.

Who uses alternative credit?

This path is especially helpful for first-time homebuyers who never opened a credit card, people who prefer to use cash or debit, and anyone who recently moved to the United States and doesn’t have a U.S. credit history yet.

If this sounds like you, don’t stress. The key is working with a lender who understands these situations and knows how to document your payment history in other ways.

What is an ITIN loan?

If you don’t have a Social Security number but you have an ITIN, which stands for Individual Taxpayer Identification Number, you may still be able to qualify for a home loan.

ITINs are issued by the IRS to people who need to pay taxes but aren’t eligible for a Social Security number. This includes undocumented immigrants, certain visa holders, and others who live and work in the U.S. and pay taxes legally.

Some lenders offer special ITIN loan programs that allow you to buy a home using your ITIN instead of an SSN.

What does an ITIN borrower need?

Here’s what most lenders will ask for:

• Your ITIN and proof that you’ve been using it to file taxes

• A valid form of identification, like a passport or government-issued ID from your home country

• Proof of income, such as pay stubs, W-2s, tax returns, or bank statements

• A down payment, often 10 to 20 percent

• A history of consistent rent or bill payments to show financial reliability

The exact requirements will depend on the lender, but it helps to get organized early and ask questions before you start shopping for a home.

Things to know going in

ITIN loans and alternative credit loans sometimes come with slightly higher interest rates or bigger down payment requirements than traditional loans. This is because the lender is taking on a little more risk, especially if they can’t see your credit score or if your income is harder to verify.

But that doesn’t mean it’s not a good option. For many buyers, these programs are a life-changing opportunity to start building wealth and owning their own home.

Final thoughts

Your financial story might not be “traditional,” but that doesn’t mean you’re out of options. Whether you’re using alternative credit, applying with an ITIN, or just navigating a less common path, we’re here to help you through it.

You don’t need perfect paperwork to start your journey. You just need the right people on your side.