Title: How tough is it to get a mortgage for a rental if your credit isn’t perfect?
Honestly, I get the frustration, but I’m not convinced lenders are just looking for reasons to say no. I think they’re just obsessed with paperwork. My own mortgage app was like a scavenger hunt—bank statements, letters about $50 Amazon refunds, you name it. My credit wasn’t spotless (thanks, 2017 car repair bill), but they still said yes in the end. It was just a lot of “prove this” and “explain that.”
I guess my point is, even with a few dings, it’s not always a dead end. Sometimes it feels like you’re auditioning for a reality show called “How Much Do You Want This House?” but if you keep sending whatever they ask for, they usually move forward. Annoying? Yes. Impossible? Not really... unless you’re hiding something wild in those Venmo notes.
I get where you’re coming from, but I’ve seen lenders flat out deny folks for less-than-perfect credit, especially with rentals. It’s not always just paperwork—they’re definitely risk-averse. Had a client last year with a couple late payments and solid income, but the lender still wanted a bigger down payment and higher interest rate. Not impossible, but it can be tougher than people expect if your score dips too low. Sometimes feels like luck of the draw depending on the lender’s mood that week…
Yeah, lenders can be super picky, especially with rentals. I refinanced last year and even with a decent score, they grilled me over every little thing. It’s not just about the number—they dig into your history, income, even your other properties. Sometimes it honestly feels like the rules change depending on who’s reviewing your file. But in my experience, if you shop around and have your paperwork tight, you can usually find someone willing to work with you. Just might cost more than you hoped.
Sometimes it honestly feels like the rules change depending on who’s reviewing your file.
Man, that’s the truth. I swear, one lender wanted to know why I had a $12 charge from “Pizza Palace” on my statement—like, sorry for loving carbs? But yeah, having your docs organized helps a ton. If your credit’s not perfect, brace yourself for higher rates or bigger down payments. It’s a pain, but not impossible if you’re persistent (and maybe cut back on pizza… or at least hide the receipts).
having your docs organized helps a ton
Can’t argue with that, but honestly, I’ve had everything in order and still felt like I was jumping through hoops. One lender grilled me about a Venmo transfer to my sister for movie tickets—like, really? Did anyone here have better luck with credit unions vs. big banks?
