Totally get what you mean about the “moving target”—I’ve had clients show up with a binder full of docs, only for the lender to ask for something wild like a year-old Venmo statement. The patience thing is underrated, honestly. Sometimes waiting a few months can save you thousands down the line. Just wish lenders would give us a checklist that doesn’t change every week...
Honestly, the “moving target” thing is wild. I refinanced last year and felt like I was on a scavenger hunt—every time I thought I’d finished, they’d ask for something random, like a screenshot of my dog’s Instagram (kidding...sort of). If your credit isn’t perfect, here’s what helped me:
1. Gather every doc you can think of—tax returns, pay stubs, bank statements, even those weird Venmo screenshots.
2. Be ready for curveballs. Lenders love ‘em.
3. Don’t rush. Waiting a few months let my score tick up and rates drop a hair.
It’s not fun, but it’s doable if you treat it like a marathon, not a sprint. And yeah, patience is the real MVP here.
Totally relate to the scavenger hunt vibe—my folder of “just in case” docs is ridiculous at this point. Did you find lenders cared more about your credit score or your debt-to-income ratio? I keep hearing mixed things, especially for rentals.
Title: How tough is it to get a mortgage for a rental if your credit isn’t perfect?
Honestly, I’ve seen lenders weigh debt-to-income (DTI) way heavier than credit score, especially for investment properties. Not saying credit doesn’t matter, but here’s what I noticed:
- DTI is like their obsession. If you’re carrying a lot of monthly payments (car, student loans, etc.), they get twitchy, even if your score’s decent.
- Credit score seems more like a “gatekeeper”—if you’re above their minimum, they move on to the numbers that actually affect their risk (aka DTI).
- For my last rental app, my mid-600s score didn’t freak them out as much as my side hustle income did. They wanted every scrap of proof I could dig up.
- Some lenders are stricter than others. The big banks grilled me on DTI and reserves. A local credit union was more chill about the ratio but wanted a higher down payment.
I’d push back a bit on the idea that credit is always king for rentals. It’s more like: if your score is “good enough,” then DTI and cash reserves become the real battleground. If either of those is shaky, they start asking for letters of explanation or extra docs... which is how I ended up with a folder that could double as a doorstop.
One thing I wish I’d known: some lenders count potential rental income toward your DTI, but only if you have a lease in hand or experience as a landlord. That tripped me up the first time.
Anyway, just my two cents—don’t stress if your score isn’t perfect. If your debts are low and you can show solid income (even if it’s cobbled together from multiple sources), you’ve got options. Just be ready for paperwork marathons and random requests for things like “proof of insurance on your 10-year-old car.”
I ran into something similar when I refinanced my primary home last year. My credit wasn’t terrible but definitely not “sparkling,” and I was worried that would be the main hurdle. Instead, the underwriter kept circling back to my DTI and reserves. They asked about every recurring payment—even a gym membership showed up in the paperwork stack somehow.
One thing that surprised me: they wanted to see several months of bank statements, not just pay stubs, and they questioned any large deposits. Made me wonder if they cared more about consistency than the actual credit score number. Did you have to explain any weird deposits or side hustle income? I had to write a letter about a Venmo transfer from my brother, which felt a little over the top.
Curious if anyone’s found a lender who’s less nitpicky about non-traditional income sources. It seems like the big banks are all about boxes and checklists, while local lenders might be more flexible... but maybe that’s just luck of the draw?
