Borrowers without credit scores

For loans where no borrower has a credit score and at least one borrower has a minimum of one credit account or installment account reported on their credit report:

• There are no limitations on loan purpose or occupancy.
• The loan application will be subject to standard eligibility guidelines and risk is assessed using the borrower’s reported credit.

For loans where no borrower has a credit score and no borrower has a credit account or installment account reported on their credit report:

• The property must be a one- to four-unit, principal residence, and all borrowers must occupy the property.
• Transaction must be a purchase or limited cash-out refinance.

• Data is gathered through a third-party asset verification report containing 12 months of data.
• DU will assess or consider a borrower’s cash flow by reviewing transaction patterns, balance trends and other observations over time in their checking and savings accounts and investment accounts.

When an asset verification report is used by DU in the analysis of loans where no borrower has a credit score, the report may be used to satisfy the nontraditional credit source documentation requirements per the Selling Guide.