Used Rocket Mortgage for my first investment property and honestly, my credit wasn’t amazing (low 700s). Still got approved, but the rate was a bit higher than I hoped. Anyone else notice lenders get way pickier with rentals? Curious if others had better luck or found a lender that’s more chill about credit scores.
Yeah, lenders definitely get stricter with rentals compared to primary homes, but I wouldn’t say they’re all equally picky about credit. I refinanced a duplex last year and shopped around—some local credit unions and small banks seemed way more flexible than the big online lenders. They looked more at my rental income and reserves than just my FICO. Maybe try a few local spots next time? The rates and requirements can be all over the place, honestly.
I hear you on the local lenders being more flexible, but I’ve actually seen some of the bigger banks cut deals for folks with less-than-stellar credit—especially if you’ve got a strong rental history or solid reserves. It’s not always black and white. Sometimes it just comes down to who’s got the right appetite for risk that month... lenders can be weirdly inconsistent.
Sometimes it just comes down to who’s got the right appetite for risk that month... lenders can be weirdly inconsistent.
You nailed it with that one. I swear, sometimes I think lenders just spin a wheel in the back room to decide who gets approved. I’ve seen folks with credit scores that look like they belong on a golf scorecard get a green light, while others with decent credit and a fat savings account get the “sorry, not this time” speech. It’s like trying to predict the weather in April—good luck.
One thing I’ve noticed is that the bigger banks do have their moments, but you’ve gotta hit them at just the right time. If they’re trying to hit some internal quota or they’ve got a new product to push, suddenly they’re your best friend. But catch them on a bad day, and you might as well be applying for a loan to buy a spaceship.
Local lenders are usually more willing to look at the whole picture, but even then, it’s not a guarantee. I had a client once who got turned down by three different credit unions, then walked into a national bank and got approved in under a week. The only thing that changed was the person reviewing the file. Sometimes it’s less about your numbers and more about who’s sitting behind the desk.
Rental history and reserves definitely help, though. Lenders love to see that you can actually manage money and keep tenants happy. If you’ve got a solid track record, that can sometimes smooth over a few credit bumps. Just don’t expect logic to always win out—mortgage underwriting is where logic goes to take a nap.
Bottom line, there’s no magic formula. It’s a weird mix of timing, luck, and whatever mood the underwriter’s in that day. Just gotta roll with it and maybe bring donuts to your next meeting... can’t hurt, right?
Definitely feels like a roll of the dice sometimes. I remember thinking my mid-700s would be “good enough,” but the lender still acted like I was asking for a favor. Ended up shopping around and got quoted everything from “maybe” to “not a chance” to “sure, but here’s a rate that’ll make you wince.” It’s wild how much it depends on the day and the person. I’ve started keeping a spreadsheet just to track who’s actually reasonable and who’s just wasting my time.
