How a Married Couple Bought a Home With 3% Down When One Spouse Had No Credit Score

By Mitch Tugaw, Mortgage Broker, NMLS #1995083 · Mortgages With Mitch, Powered By Barrett Financial LLC

Quick answer: Yes, you can buy a home with no credit score in Vancouver, WA or Portland, OR. Instead of a score, the lender documents a 12-month history of on-time payments such as rent, utilities, a phone bill, or car insurance. We recently closed a Fannie Mae HomeReady conventional loan with 3% down for a married couple where one spouse had a credit score and the other had none.

The Situation: One Spouse With Credit, One Without

This week's story is about a married couple buying their first home in the Portland-Vancouver metro. One spouse had an established credit score. The other had never built one. No credit cards, no car loan, nothing the credit bureaus could score.

A lot of couples in this spot assume the answer is "wait a year or two and build credit first." Often that is not necessary. Their income was solid, they had a down payment ready, and they had been paying their bills on time for years. The problem was that none of it was showing up on a credit report.

Can You Really Get a Mortgage Without a Credit Score?

Yes. Lenders are allowed to use what is called nontraditional credit when a borrower has no credit score or too little credit history to generate one. Under Fannie Mae guidelines, the lender first checks all three credit bureaus to confirm there is no score to be found. If there is not, the borrower's payment history is documented another way.

Fannie Mae's guide lists a range of acceptable references, including:

• Rent paid to a landlord or property management company
• Utilities (electric, gas, water, phone, TV, internet)
• Cell phone payments
• Auto, renter's, and other insurance premiums
• Childcare, tuition, or other recurring payments
• Savings accounts showing regular deposits

The key requirement is history. The payment record for each reference needs to cover the most recent 12 consecutive months, and the reference needs to involve regular payments (at least every three months). When the loan is run through Fannie Mae's automated underwriting system (DU), at least two references per borrower without a score are generally required, and a housing payment history such as rent is typically one of them. Fannie Mae also allows a 12-month bank data report, paired with a DU cash flow assessment, to serve the same purpose.

How We Got This Couple to Closing

1. We confirmed there was truly no score. Before anything else, we verified that the second spouse had no score at any of the three bureaus.

2. We built the nontraditional credit file. This is the hands-on part. We collected 12 months of on-time rent payments, plus other recurring bills that could be documented separately, such as a phone bill and car-related payments. The cleaner and more consistent the paper trail, the smoother the file.

3. We checked the income split. Fannie Mae looks at how much of the qualifying income comes from the borrower who has a credit score. When that borrower earns more than 50% of the qualifying income, the file is in a strong position, because the scored borrower is carrying the loan. In this case, the spouse with the credit score was the larger earner, which is a big part of why conventional financing worked. When the scored borrower earns 50% or less, conventional can still be possible, but the nontraditional history must be documented for the borrower without a score, and the file gets tighter. In some of those cases an FHA loan is the better fit.

4. We used the HomeReady program with 3% down. HomeReady is Fannie Mae's conventional program designed for lower down payments, and it is built to work for borrowers with limited credit. With the scored spouse carrying the income, the full nontraditional file in place, and the property a primary residence, we were able to structure the loan as conventional with 3% down.

5. We closed. A couple who thought they needed to wait are now homeowners.

What Most Articles Get Wrong About Buying With No Credit Score

Many national articles say you need to "build credit for 12 months first" or that no-score borrowers are limited to FHA. That is outdated for plenty of buyers. A few things to know:

• Conventional is possible, including low down payment programs like HomeReady. Having one borrower without a score does not automatically push you into FHA.
• Primary residence matters. Programs for borrowers with no score are built around homes you will live in, and loan amounts generally need to stay within the baseline conforming limit. The 2026 conforming loan limit for all Oregon counties is $832,750.
• FHA is still a real option. FHA can underwrite borrowers with nontraditional credit and has its own rules. For FHA, if one borrower has no score, qualifying is based on the borrowers who do have scores and the income of occupying borrowers.
• Your history is the product. The longer and cleaner your rent and bill payment record, the better.

Tips if You Are Buying in Vancouver or Portland With No Credit Score

If you live in Clark County, Multnomah County, or anywhere nearby, start gathering these now:

• 12 months of rent payment proof (bank statements, a payment ledger, or landlord verification)
• Statements for phone, internet, and utilities in your name
• Insurance payment records for your car or renter's policy
• Bank statements showing consistent savings deposits

Paying rent in cash or through informal channels is the most common problem I see. If your payments are not traceable, start paying by a method that leaves a record, even before you talk to a lender.

My Take

Credit scores are not the same thing as creditworthiness. Some of the most reliable people I work with simply never took on debt, and the system does not always give them credit for that. The good news is that there is a path that recognizes how you actually handle money.

If you or your spouse has no credit score, do not wait it out on assumption. Talk to a broker who knows how to build the file. Sometimes it is a matter of weeks to document it, not years to build credit. If you want to know where you stand, reach out here and I will walk you through your options.

Frequently Asked Questions

Can you buy a house with no credit score in Washington or Oregon?
Yes. Lenders can use nontraditional credit, such as 12 months of on-time rent, utilities, phone, and insurance payments, in place of a credit score. This applies in both Washington and Oregon.

Can one spouse have no credit score and still get a conventional loan?
Yes. If one borrower has a score and the other does not, a conventional loan is still possible. The borrower without a score needs a documented nontraditional credit history, and the strength of the scored borrower's income and credit helps the file.

How much down payment do you need with no credit score?
It depends on the program and the underwriting findings. We recently closed a HomeReady conventional loan for a married couple with 3% down where one spouse had no credit score. Other situations may call for more, so it is worth reviewing your file before assuming.

What counts as nontraditional credit for a mortgage?
Rent payments, utility bills, cell phone payments, insurance premiums, and similar recurring obligations with a documented 12-month history. Some lenders can also use a bank data report showing consistent payment activity.

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Mitch Tugaw is a mortgage broker (NMLS #1995083) with Mortgages With Mitch, powered by Barrett Financial LLC, an Equal Housing Lender. This article is for general information only and is not a commitment to lend. Loan programs, rates, down payment requirements, and eligibility vary by lender and borrower and are subject to change. Confirm current details with a licensed loan officer before making financial decisions.