Perhaps there are some reasons you are looking for mortgage loans with no credit check.  You just might have a few items on your report that would make the average, no training, no imagination, no real decision making capability mortgage broker turn and run.  It probably isn’t as bad as you think, but I’m not one to judge.  Then you’ll need to prepare for your no credit check mortgage loans with either a lot of money up front or a lot of expected cash flow.

Prepare for High Interest Rates

The one way the bank has to deal with no credit check mortgage loans is to charge a lot of money in interest.  If you’re going to accept this fate you may end up paying hundreds of thousands of dollars in extra interest over the course of your loan.  You probably have a little bad credit, you didn’t kill someone.  You shouldn’t be gouged like that.  The only way to avoid this is plan on paying extra payments every month.  An extra payment a year can knock out about 7 years of payments on a 30 year loan.  You can’t say you will make the extra payments; you must make the extra payments.

Prepare for a Large Down Payment

If you don’t want to pay high rates you can prepare for your no credit check mortgage loan by gathering a large down payment.  The large down payment helps guarantee the equity in the home you’re trying to buy even if the market turns down a little bit.  You’ll need at least 20% down, but perhaps even as much as 30% down before you have much hope of a decent interest rate without a credit check.

Have no Debt

The best way to qualify for no credit check mortgage loans is to not have any borrowing activity for seven years.  This will give you a zero credit score and empty credit report.  When you have a zero credit score you qualify for many special rates and loan programs.

Be wary of lenders of the no credit check mortgage loans that require very little identification or evidence at all.  Any lender is going to require some form of evidence that you have the ability to make the payments.  If the borrowing process is too simple there is likely a scam happening that is looking to get you to pay excessive fees, or lose your home after a few payments because you didn’t fully understand what you signed.  Always check the lender with the better business bureau or online scam forums.

Knowing What No Credit Check Home Loan Really Means

If you are talking to the bank, it means simply put that you are putting more than twenty percent down on the property and they will come and clean your clock financially should you default.  And that is really about it, not much small print or areas of law to fudge, if you have a house “epic fail” they come and get you, and you are eating beans and weenies because of your no credit check home loan, so if you think you may in any way not be able to do that house don’t even try it, they will come and get you, game over, bank wins.

Home loans with no credit check also means owner financing, and this is where things get fuzzy.  No credit check home equity loans can either be a really great idea, or it can screw you harder than a hockey team would.  Let me first explain that my father lost our first home this way, and it literally ruined his life and health for over ten years.  He is still unable to discuss it and now that he is in his fifties, and approaching retirement, the damage that did to his financial health is even more apparent.  The failure on his part was that the home was only owner financed for seven years, just enough time for the old man to make a bunch of repairs and put a good chunk of money down on the place.  His mistake was falling in love with the home, and having to have it at any cost.

The bottom line with no credit check home loans is either make the owner hold the ENTIRE contract, or do not buy the house because it is not likely you will be able to finance that house in seven years if you cannot finance it today.  Too many people make the mistakes dad did, and go into it thinking seven years is a long time away and things will be different when the time comes to refinance the house.   They are all wrong, and it makes my stomach turn to think if all the poor sots who have been sucked into this trap.  It is extremely difficult to prove this kind of fraud, but that does not make it fraud any less and that is of no consolation to the people who have lost everything to these schemes.