To obtain a mortgage loan without a credit card, focus on alternative credit sources and specialized loan programs. First, lenders may consider non-traditional payment history, such as rent, utility payments, or employment verification, instead of traditional credit reports. Second, explore government-backed loans like FHA mortgages, which accept alternative credit profiles. Third, provide documentation like pay stubs, tax returns, and asset statements to demonstrate financial stability. Consult a mortgage broker to identify lenders offering non-traditional credit evaluations.

The primary challenge is that conventional mortgages typically require a credit score derived from credit card or loan history. However, alternative data sources can substitute for traditional credit metrics. According to the Consumer Financial Protection Bureau (CFPB), approximately 26 million U.S. consumers lack a credit report, often due to limited credit history or recent immigration. FHA loans, insured by the U.S. Department of Housing and Urban Development, explicitly permit lenders to assess non-traditional creditworthiness, including rent payments and utility consistency. A 2021 CFPB report found that 12% of mortgage applicants with non-traditional credit were approved, compared to 7% for those without alternative data. Additionally, the National Association of Realtors (NAR) notes that 23% of first-time homebuyers in 2022 relied on alternative credit evaluations, reflecting growing lender flexibility. Lenders may require larger down payments (e.g., 10%–20%) or higher interest rates to offset risk, but these programs enable access to homeownership for underserved populations.