No Credit Verification Loans are a type of loan where the lender doesn’t perform a traditional credit check. There need to be 12 months of history of payment under Borrowers name such as phone or car payments. Here are some key features and considerations for No Credit Verification loans:
- Contract Duration: Typically 25 to 30 days from offer acceptance to closing, offering a relatively quick turnaround.
- Credit Score Requirements: No specific credit score requirement, making it accessible to borrowers with varying credit histories.
- Down Payment: A minimum down payment of 3.5% is required, which can make homeownership more achievable for many borrowers.
- Reserve Requirement: Lenders require borrowers to have a reserve of at least one month’s worth of funds, adding a financial cushion.
- Payment History: A favorable payment history over the past 12 months is typically required, demonstrating responsible financial management.
- Compensation: Both lender and Borrower paid compensation