I’ve heard the same thing about DSCR loans—more flexible, but you pay for it in other ways.
That’s interesting. I’ve only talked to big banks so far and they seemed pretty rigid about credit scores and debt-to-income. Do credit unions actually factor in things like rental history or side income? I’m wondering if it’s worth switching gears before I get too deep into paperwork.“Sometimes they’ll look at the whole picture, not just the W2s.”
Credit unions can be a bit more flexible, but it really depends on the specific institution. Some will look at rental history or even consistent side income, especially if you can document it for a couple of years. I’ve seen cases where they’ll factor in things like long-term tenants or even Airbnb income, though you usually need to show a track record. The trade-off is that their rates and fees might not always beat the big banks, and sometimes their process is slower.
One thing I’ve noticed—smaller lenders or local credit unions sometimes have more leeway to make exceptions, especially if you’ve already got accounts with them. Have you checked with any mortgage brokers yet? They can sometimes shop around for you and find lenders who are open to alternative documentation. Curious if anyone’s had luck with online lenders or fintechs for rental properties, especially with less-than-perfect credit...
Getting a mortgage for a rental with less-than-stellar credit is like trying to win a game of Monopoly when someone else already owns Boardwalk and Park Place—possible, but you’ve gotta get creative.
- Credit unions can be quirky. I’ve seen them approve folks based on rental history, but then turn around and nitpick over a $50 cell phone bill on your credit report. Go figure.
- Mortgage brokers are like matchmakers for your finances. Sometimes they’ll find you a lender who’s cool with side hustle income, but other times it feels like they’re just swiping left on your whole application.
- Online lenders and fintechs? Mixed bag. Some are super fast and don’t care if your credit isn’t perfect, as long as you can show cash flow from rentals. Others act like robots—if you don’t fit their algorithm, it’s a hard no.
I’m curious—has anyone actually closed with one of those app-based lenders? I had a client try with one last year, but they bailed halfway through because the process got weirdly complicated. Maybe things have changed since then...
I’ve seen them approve folks based on rental history, but then turn around and nitpick over a $50 cell phone bill on your credit report.
Had a deal almost go through with one of those app-based lenders last fall. Looked promising at first—super quick responses, slick interface, all that. But midway, they started asking for the weirdest docs, like three years of utility bills and proof of dog ownership (kidding, but it felt like that). Ended up bailing and went back to a local broker. Honestly, I haven’t seen much improvement since then. The tech is cool, but the underwriting still gets clunky if your file isn’t squeaky clean.
Yeah, I’ve run into that too. All the fancy apps and “instant approvals” sound great until you hit that wall where they want to see every scrap of paper you’ve ever had. I swear, it’s like if your credit report isn’t spotless, they just start fishing for reasons to say no. Local brokers aren’t perfect either, but at least you can talk to a real person when things get weird. Honestly, unless you’re cookie-cutter, it still feels like a slog.
