Final answer:
If you do not have a FICO score, you can potentially qualify for a mortgage based on your history of renting and utility payments, the size of your down payment, and your employment history. Lenders may also consider additional forms of security like a co-signer or collateral. option 4 is correct.
Step-by-step explanation:
If you do not have a FICO score, lenders make their decisions based on other factors that can demonstrate your ability to repay a loan, such as your history of rental and utility payments, the amount of your down payment, and your employment history. Lenders have a fair way to make a credit decision, ensuring that things like race, gender, religion, etc., are not taken into account. Lenders look for information that demonstrates financial responsibility and stability.
Factors like a history of rental and utility payments show that you've been responsible with your ongoing financial obligations. A substantial down payment along with a steady employment history can also indicate to lenders that you are capable of saving and managing money effectively, which in turn suggests you might be a low-risk borrower even without a conventional credit history.
It’s important to note that even without a credit history, a lender might require other forms of security such as a co-signer or collateral, in order to mitigate their risk when offering a mortgage.