Maybe you've always chosen to live without debt and have never had a credit card or car loan, or perhaps you are a recent college grad and have not yet established a credit history. However, because most mortgage lenders heavily emphasize credit scores when approving mortgage loans, your lack of credit puts you in a tricky situation. While difficult, it is not impossible to buy a home with no credit, as long as you follow these three tips: 

Save Up for a Larger Than Average Down Payment

The bigger your down payment, the less risky a bank will see you as a loan candidate. The average down payment for a home is around 10%, so if you can manage to save a 20-30% down payment, you will be seen as an attractive loan candidate even without a credit history. This may seem like an unattainable amount of money to save up, but with a little creativity you may surprise yourself. Here are some ways to save for a down payment quickly:

• Get a second job on the weekends or in the evenings. This might be a restaurant gig, babysitting, or pet sitting.

• Try freelancing on the side if you have solid writing, web design, photography, or accounting skills.

• If you are getting married, set up a "first home fund" instead of a traditional gift registry.

Look Into No Credit Loans

While less common, there are loan programs open to people with no credit history. These tend to be state-specific so a good place to start is Googling your state and "no credit home loan." Some credit unions have mortgage lending programs with less stringent credit requirements than traditional banks.

Finally, if you are a first time home buyer, you may qualify for an FHA loan. The FHA program does in some cases approve borrowers with limited or non-traditional credit history, though there is no guarantee you will be approved and their official recommendation is to spend a year developing a credit history before you apply.

Ask Your Landlord to Report Your Rental History

Some of the credit bureaus will now let you build a credit history based on paying your rent on time. The best thing about this is if your landlord opts into one of these programs, they can even add past rent payments in order to establish a longer credit history.

By following these tips, you will be able to successfully get through the home buying process without a long credit history. For more advice, talk to a company like SWE Homes.