Honestly, points aren’t always set in stone, but with a lower score, lenders definitely dig their heels in more. Sometimes you can get a little wiggle room if you’ve got a bigger down payment or if you’re willing to take a slightly higher rate instead. I’ve seen some folks negotiate closing costs instead of points, too. Out of curiosity, did you look into any local credit unions or smaller banks? They can be surprisingly flexible compared to the big guys.
I’ve gotta say, I’m a big fan of smaller banks and credit unions for exactly that reason—they’re often more willing to look at the whole picture, not just the score. That said, I’ve seen plenty of folks get a rental mortgage with less-than-perfect credit, but you’re right, the down payment really does all the heavy lifting there. Sometimes people forget you can also offset risk by showing strong rental income potential or solid reserves. Points and closing costs are just part of the dance... but don’t let anyone tell you there’s only one way to do it. Every lender’s got their quirks.
Points and closing costs are just part of the dance... but don’t let anyone tell you there’s only one way to do it.
That’s the truth—every lender’s got their own “secret handshake.” Ever had a bank care more about your rental history than your credit? I once had a loan officer grill me about my lease agreements but barely blink at my score. Is that common, or did I just get lucky?
It’s not just you—some lenders really do put a lot of weight on rental history, especially if you’re looking at investment properties. I’ve seen folks with less-than-stellar credit get approved because they could show a solid track record managing rentals and keeping up with payments. It’s like, if you can prove you’re responsible with tenants and leases, that sometimes counts for more than a number on a credit report.
That said, it’s definitely not the norm everywhere. Some banks are super rigid about credit scores and won’t budge, no matter how many rent rolls or lease agreements you bring in. Credit unions and smaller local lenders tend to be more flexible, in my experience. It really depends on who’s sitting across the desk from you... and sometimes just what kind of day they’re having.
If you’ve got a strong rental history, it never hurts to highlight that up front. Just don’t be surprised if the next lender you talk to is all about the FICO score instead. The “secret handshake” thing is real—every lender’s got their quirks.
Honestly, I ran into this exact thing last year. My credit’s not terrible, but it’s not sparkling either, and I figured my years of handling rentals would count for more. Nope—first bank I tried barely glanced at my rental docs and just zeroed in on my FICO score. Kinda frustrating, honestly. Ended up at a local credit union and they actually cared about my track record. Feels like a roll of the dice every time... but yeah, rental history can open doors if you find the right person. Just wish it was more consistent across the board.