I’ve actually seen local lenders get creative, especially if you’ve got a long-standing relationship or solid assets elsewhere. They’ll sometimes look at the “whole picture” instead of just the numbers on paper. Not saying they’ll ignore a high DTI, but I’ve watched them bend a little if everything else checks out. Online lenders? Yeah, not so much—if you’re not a perfect fit, it’s like the computer says “nope” and that’s it.
They’ll sometimes look at the “whole picture” instead of just the numbers on paper.
That’s been my experience too, but it really depends on the lender and how well they know you. Had a deal last year where my DTI was a bit higher than they liked, but I had a couple of paid-off properties and a decent chunk in reserves. Local credit union looked at my rental history, saw I’d never missed a payment, and basically said, “We trust you’ll make it work.” Try getting that kind of flexibility from an online lender—no chance.
- Local banks/credit unions: more likely to consider your track record, assets, and even character references.
- Online lenders: it’s all about the algorithm. If you don’t fit their box, you’re out.
Not saying it’s easy with imperfect credit, but if you’ve got some equity or a solid relationship with a lender, there’s room to negotiate. Just don’t expect miracles if everything else is shaky.
Local banks/credit unions: more likely to consider your track record, assets, and even character references.
That’s been my take too. I’ve seen clients get approved with less-than-stellar credit just because they had strong rental history and some equity built up. Local lenders are way more flexible if you can show you’re responsible. Online lenders? If your numbers don’t fit, it’s a hard no. Doesn’t mean it’s easy, but relationships still count for something in this business.
I’ve found that to be true, but I’d add a little caution—sometimes even the local banks will want to see more paperwork than you’d expect. I remember when I refinanced my rental, my credit wasn’t perfect but my payment history was spotless. The loan officer actually called my previous landlord just to double-check.
—definitely, but it’s not always a slam dunk either. Has anyone had a local lender ask for something really unusual during the process?relationships still count for something in this business
I’ve seen lenders ask for some pretty odd stuff—one client had to provide a letter explaining a $200 Venmo transfer from six months prior. It’s wild how much scrutiny you can get, even with solid payment history. I always tell folks to expect more hoops if your credit isn’t spotless. Did anyone ever have to jump through extra steps just because of a minor credit ding? Sometimes it feels like they’re looking for reasons to say no...
