- Been there. My credit’s not spotless either, but here’s what worked for me:
- Shopped around—big banks were the toughest, local credit union was chill
- Had to cough up a bigger down payment
- Wrote a letter explaining my “oops” moments (they actually read it)
- Rates were a bit higher, but not deal-breaking
Seriously, don’t let one old Target slip-up make you think you’re out. The system’s weird, but it’s not impossible.
Honestly, the letter thing is underrated—underwriters are human (most days, anyway), and context can help. But I’m curious, did you find the local credit union’s process slower or just more flexible? Sometimes folks get spooked by the paperwork, but in my experience, smaller lenders will actually listen if you’ve got a story to tell.
On the down payment side, yeah, that’s usually the trade-off. Higher risk for them means they want more skin in the game from you. Did you end up putting 20% down, or was it even higher? I’ve seen some lenders ask for 25-30% if your score’s on the lower end, especially for rentals.
And about rates—sometimes people get so fixated on “perfect” credit that they don’t realize a slightly higher rate isn’t always a dealbreaker, especially if the property cash flows well. The Target slip-up made me laugh... I once had a client who missed a $12 library fine and it somehow showed up on their report. Go figure. The system’s weird, but like you said, not impossible.
Honestly, I’ve seen the “write a letter” trick work, but sometimes it feels like tossing a message in a bottle—depends who finds it on the other end. I actually had a client get more traction with a big bank than the local credit union, which surprised me. The CU wanted every document since birth and still dragged their feet. And about rates, I get what you’re saying, but those extra half points can add up if you’re tight on cash flow. Sometimes it’s worth shopping around even if your credit isn’t sparkling.
You’re spot on about those half points making a difference, especially if you’re running the numbers tight every month. I’ve been through the wringer with both big banks and credit unions, and honestly, it’s a toss-up. People always say CUs are more “personal,” but in my experience, they can be just as bureaucratic—sometimes worse. I once had to dig up tax returns from a decade ago for a CU, while the big bank just wanted last year’s and some pay stubs.
As for writing letters, yeah, it’s hit or miss. If you get someone who actually reads it and cares, great. But most of the time it feels like you’re just another file in the stack. Shopping around is key, even if your credit isn’t perfect. Some lenders are way more flexible than others, and you never know who’s going to give you a break until you ask. Just be ready for paperwork overload no matter where you go... seems like that’s the one thing they all have in common.
That’s the truth—paperwork is the great equalizer, no matter who you go with. I’ve seen folks get tripped up by the tiniest things, like a missing page on a bank statement or a W-2 from three jobs ago. And I have to say, I’m with you on credit unions not always being the friendlier option.
Couldn’t agree more. The “personal touch” is hit or miss, and sometimes it’s just more hoops.“People always say CUs are more ‘personal,’ but in my experience, they can be just as bureaucratic—sometimes worse.”
One thing I tell clients: don’t underestimate smaller local lenders or mortgage brokers. They can be more nimble, especially if your credit’s not pristine—they’ll actually look at the story behind your numbers instead of just running you through a checklist. Ever tried working with a broker instead of going direct to a bank or CU? Curious if anyone had better luck that way, especially with rental properties where the requirements get even tighter.
