Not gonna lie, I get where you’re coming from, but I’ve seen banks get a little more flexible lately—especially if you can show solid cash flow from rentals.
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“first bank I tried barely glanced at my rental docs and just zeroed in on my FICO score.”
Yeah, some lenders are stuck in the FICO Matrix. But others? If you show up with spreadsheets, tax returns, and maybe a few dad jokes (okay, maybe not that last one), they’ll at least listen.
- Credit unions are great, but don’t sleep on mortgage brokers. They can sometimes find weird little lenders who care more about your rental hustle than your credit hiccups.
- Consistency? Ha. That’s like asking my cat to stop knocking stuff off the counter. Not happening anytime soon.
Just saying—sometimes it’s about finding the right flavor of lender, not just the right paperwork.
Honestly, I’ve seen some lenders get creative lately, especially if you can prove your rentals are making money. One client of mine had a mid-600s score but solid rental income and detailed records—ended up with a decent rate through a local broker who worked with portfolio lenders. It’s not always smooth sailing, but if you can show the numbers, there’s usually someone out there willing to listen. Just gotta be ready for a little extra paperwork (and maybe a few hoops).
I’ve seen similar situations, but I’d just caution folks not to underestimate how much lenders care about credit scores, even with strong rental income. Some will work with you, sure, but the terms aren’t always as favorable as you’d hope—higher rates, bigger down payments, stricter reserves. It’s doable if your numbers are solid and you’re organized, but I wouldn’t bank on it being easy or quick. Having backup documentation for every dollar helps a lot... but patience is key.
Honestly, I think a lot of folks underestimate just how much those extra fees and higher rates can eat into your returns. Lenders see a less-than-stellar credit score and suddenly you’re not just paying more up front—you’re paying more every single month. I’ve been down this road before, and even with a solid rental history and proof of income, the hoops they made me jump through were wild. It’s not just about having your paperwork in order (though that definitely helps), it’s about being ready for them to ask for stuff you didn’t even know existed. And yeah, patience is key, but also... be ready to walk away if the numbers don’t make sense. No rental property is worth getting locked into a bad deal just because you want in the game. Sometimes waiting a year to clean up your credit saves you way more in the long run. Just my two cents.
You nailed it—those extra costs really do add up, and it’s easy to underestimate how much they’ll eat into your cash flow over time. I’ve seen folks get so focused on just getting approved that they overlook the long-term impact of higher rates or fees. It’s not just about qualifying; it’s about making sure the deal actually works for you in the long run.
I’ve been through a similar process where I thought I had every document ready, only to have the lender ask for things like letters explaining random credit inquiries or proof of reserves I didn’t even realize I needed. It can feel like a moving target sometimes.
Waiting to improve your credit can be frustrating, but you’re right—it often pays off way more than rushing into a deal with bad terms. There’s always another property out there, but you only get one shot at locking in a good rate on each loan. Sometimes patience is the best investment tool you’ve got.
