Man, I hear you on the underwriter nitpicking. I once had them grill me over a $150 Venmo from my brother—literally just splitting dinner. It’s wild how deep they dig, especially if your credit’s not shiny. Have you ever had them ask about cash deposits from rental income? That tripped me up the first time...
It’s wild how deep they dig, especially if your credit’s not shiny.
Yeah, I totally get where you’re coming from. The first time I tried to get pre-approved for a rental property, the underwriter flagged a $200 cash deposit from my side gig—just dog-sitting for a neighbor. I had to scramble to find old texts and a Venmo screenshot to prove it wasn’t anything shady. Makes you second-guess every little transfer or deposit. I get why they’re thorough, but man, it can feel like overkill when your credit isn’t perfect.
It’s wild, right? Lenders really do comb through every little thing, especially if your credit isn’t spotless. I’ve seen folks get flagged for random PayPal transfers or even birthday money. One tip: keep a folder with explanations and screenshots for any odd deposits. Saves a ton of stress later. They’re just looking for consistency, but yeah, it can feel like you’re under a microscope.
Totally agree, the scrutiny can feel over the top sometimes. Here’s what’s helped me (and some clients) get through it:
- Keep a running log of any “weird” deposits—just a quick note on what it was for.
- If you’re self-employed or have side gigs, expect even more questions. Lenders love paper trails.
- Don’t move money around between accounts right before applying. That just raises more flags.
- If your credit isn’t perfect, a bigger down payment can smooth things over a bit.
It can be a pain, but once you’ve got your docs lined up, the process is a lot less stressful.
Title: How tough is it to get a mortgage for a rental if your credit isn’t perfect?
That’s a solid list—especially the bit about not shuffling money around. I’ve seen folks get tripped up by that more than once. Lenders really do seem to have a sixth sense for sniffing out anything that looks even slightly off.
A couple of things I’d add or maybe tweak:
- Even with less-than-stellar credit, some lenders will still work with you if you can show consistent income and a decent savings cushion. It’s not always just about the score, though it definitely helps.
- Bigger down payment is huge, but sometimes people overestimate how much extra they need. I’ve seen approvals with 15-20% down, even when credit was in the mid-600s. Not ideal, but not impossible either.
- If you’re self-employed, be ready for them to ask for two years of tax returns and then pick apart every line. It’s annoying, but if you’re organized, it’s manageable.
- One thing that gets overlooked: letters of explanation. If there’s something weird in your financials (like a big deposit from selling an old car), just write a quick note. Lenders actually appreciate it and it can save a lot of back-and-forth.
Honestly, the process feels invasive at times, but it’s not personal—they’re just covering their bases. I’ve had clients who felt like they were being interrogated, but once everything was submitted and explained, things moved along pretty smoothly.
It’s definitely doable with imperfect credit, just takes a bit more patience and paperwork. And yeah... keeping track of all those docs ahead of time makes life way easier when the questions start rolling in.
