I’m not comparing the systems or saying it’s better, but you don’t need a credit rating to get a mortgage on a home in the US and are doing yourself a disservice repeating that talking point.
If you don’t have a credit rating they’ll ask for other evidences you are able to pay off a 15-30 year loan like consistent and not missing payments on a phone, rent, utilities, internet, etc steady employment, bigger down payment. it’s called manual underwriting or a non traditional mortgage application.
It’s much more difficult to secure a mortgage that way and you will be paying exploitive interest rates. It’s like saying offering up collateral or buying a house outright is path to home ownership- something the vast majority of homebuyers can not do.
Most people that don’t have a credit rating don’t have the secondary information they’ll ask for to do the manual underwriting process, and it seems nobody publishes direct data sets on no credit rating loans, but I did find some estimates at around 0.5-2% that’s still thousands of mortgages a year but not really significant amount overall.
I thought it was closer to 8-10% but that was bullshit after looking into it more to get the numbers above, and if it’s only 2% then I’ll rescind the original statement & stand corrected, that’s for any practical measure a requirement.
Not to minimize how fucked the US is, but this is true to some degree. There’s a lot of ways to get a mortgage with lower credit, with or without federal and state grants. Most people could probably get approved for a mortgage.
Now, getting approved for a mortgage that’s large enough to afford anything near your work is a bigger question. But if you can afford to live in a cheaper area and have consistent income, it’s worth checking to see if escaping the rent trap is a possibility.
If you treat your credit card like your debit card, you can get 3% off literally everything. As long as you don’t spend more than you make, you’ll never owe interest.
I have enough credit, I can by a whole car with the swipe of a card. I’ll never have to wonder about underwriting or proving myself. I’ve already done so to my bank. And if I ever decide to do that, I’ll have zero down and zero interest for 6 months.
I’m not comparing the systems or saying it’s better, but you don’t need a credit rating to get a mortgage on a home in the US and are doing yourself a disservice repeating that talking point.
If you don’t have a credit rating they’ll ask for other evidences you are able to pay off a 15-30 year loan like consistent and not missing payments on a phone, rent, utilities, internet, etc steady employment, bigger down payment. it’s called manual underwriting or a non traditional mortgage application.
It’s much more difficult to secure a mortgage that way and you will be paying exploitive interest rates. It’s like saying offering up collateral or buying a house outright is path to home ownership- something the vast majority of homebuyers can not do.
Most people that don’t have a credit rating don’t have the secondary information they’ll ask for to do the manual underwriting process, and it seems nobody publishes direct data sets on no credit rating loans, but I did find some estimates at around 0.5-2% that’s still thousands of mortgages a year but not really significant amount overall.
I thought it was closer to 8-10% but that was bullshit after looking into it more to get the numbers above, and if it’s only 2% then I’ll rescind the original statement & stand corrected, that’s for any practical measure a requirement.
Man, what world you live in?
Not to minimize how fucked the US is, but this is true to some degree. There’s a lot of ways to get a mortgage with lower credit, with or without federal and state grants. Most people could probably get approved for a mortgage.
Now, getting approved for a mortgage that’s large enough to afford anything near your work is a bigger question. But if you can afford to live in a cheaper area and have consistent income, it’s worth checking to see if escaping the rent trap is a possibility.
If you treat your credit card like your debit card, you can get 3% off literally everything. As long as you don’t spend more than you make, you’ll never owe interest.
I have enough credit, I can by a whole car with the swipe of a card. I’ll never have to wonder about underwriting or proving myself. I’ve already done so to my bank. And if I ever decide to do that, I’ll have zero down and zero interest for 6 months.