What is a Manual Underwriting and How Does it Benefit You
4 minute read
November 20, 2019


You may have heard about people getting a mortgage without a credit score, but have you ever wondered how you can get one? If your financial standing is stable, then manual underwriting is what you are looking for.

Many people are not familiar with the process of qualifying for a mortgage through manual underwriting, so we took the liberty to inform you about it and how it benefits you.

Let’s dig into the basics first.

  • Manual underwriting is a process that involves an individual figuring out the risk involved by giving you a mortgage instead of software. The software usually has algorithms that automatically decide whether you’re a good risk for the lender or not. 

Is Manual Underwriting Good for You?

Manual underwriting is good to know if you fall under the following – 

  • You don’t have a credit score because you don’t have a debt
  • You went through a recent foreclosure or bankruptcy
  • You have a thin credit file

Can you Get Mortgage Without a Credit Score?

  • You have probably heard and seen before, life is nothing without a credit score. Many people agree that you can pay in cash for a vehicle and save your money to go through college, but when it comes to buying a house, things are different.

Buying a house involves large amounts of cash that you can’t really save overnight or pay for in cash outright especially if you are buying a house in an expensive neighborhood. So what happens if you decide to buy a house and want to get a mortgage – will you still need a credit score? 

Contrary to popular belief, not really.

  • The mortgage industry wants you to believe that everything works with a credit score. They want you to have a good credit score to qualify for a mortgage but that isn’t the case in reality.

The reason the industry wants you to have a credit score because every lender does not want to put in an extra effort to approve you for a mortgage without a credit score. But this does not mean getting a mortgage without a credit score is impossible.

So How do You Get Mortgage Without a Credit Score?

  • If you want a mortgage without a credit score, you need to stop using credit cards today. The idea is that you want to remain as debt-free as possible. It may take some time but it will improve your credit. 

Just try any mortgage credit score calculator and if you are debt-free, you’ll be given a high score.

  • The next step is getting your mind ready to purchase a home. You’ll have to work with a mortgage broker and we at Aceltis Group are experts in connecting you with the best ones out there. 

The first thing a mortgage broker will do is check your credit score. And if you’ve been avoiding credit cards and are completely debt-free, you’ll hear the good news. 

Go for Manual Underwriting

  • When you connect with a mortgage broker, they will always test you through software. And the software can easily find loopholes in your financial situation which can lead to disapproval of loans. This is where your skills come in.

You’ll have to convince the mortgage broker to do manual underwriting for you. But they won’t just do it if you ask them. However, if you can provide your financial documents and lessen their burden, they will be willing to take manual underwriting.

  • At Aceltis Financial Group, we help people like you collect all the necessary financial documents so you can easily work with your mortgage broker if you want a loan without a credit score. You can even qualify for a jumbo loan which involves manual underwriting. 

You’ll have to show the following documents though – 

  • Tax returns over several years
  • Last 12 months bank statements
  • Non-retirement investment account statements
  • Proof of continuing income

You’ll also have to show that you are creditworthy using several means. For many, it means providing their payment history from a few different sources. You can use your cell phone bill, house rent, and electric bill to show these.

  • Be ready to provide this and more information to the broker and you will eventually get a home loan without worrying about your credit rating.

The process, however, can take several weeks to complete so make sure you are ready and patient. Talk to one of our specialists and we will gladly help you understand the requirements as well as help you get a home loan without a credit score. 

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