Title: How tough is it to get a mortgage for a rental if your credit isn’t perfect?
You nailed it about paperwork—missing even the smallest detail can throw a wrench in the whole process. I’ve seen folks with solid finances get delayed over something as minor as a page missing from a PDF. And yeah, the “personal touch” at credit unions is really hit or miss. Sometimes it just means more forms and extra steps, not less.
On the broker side, I’d say there’s definitely some truth to what you mentioned. Brokers can sometimes dig deeper into your situation instead of just running you through a rigid checklist. That said, it’s not always a magic fix—lenders still have their own risk guidelines, especially with rentals where they’re extra cautious. But I’ve watched clients with less-than-perfect credit get approved because we could explain their story and present compensating factors (like strong rental income or bigger down payments). It’s not guaranteed, but there’s usually more room for nuance than at big banks.
If you’re organized and upfront about any credit bumps, smaller lenders or brokers might be able to work with you in ways that larger institutions just won’t consider. Just don’t expect shortcuts on documentation... that part never really goes away.
That’s a good point about brokers being able to tell your story—sometimes that makes all the difference, especially if your credit’s not spotless. I’ve seen lenders warm up when we can show a solid rental history or a bigger down payment, even if the credit score isn’t ideal. Curious if anyone’s run into lenders who were surprisingly flexible (or the opposite) about things like recent late payments or medical collections? It seems like every lender has their own quirks...
Title: How tough is it to get a mortgage for a rental if your credit isn’t perfect?
Yeah, lenders can be all over the place with this stuff. I had one who barely blinked at an old medical collection, but another basically acted like I’d robbed a bank over a single late payment from two years ago. Bigger down payment definitely helped smooth things over. Honestly, sometimes it feels like they’re just looking for a reason to say no... or maybe just in a bad mood that day.
It really does feel like a roll of the dice sometimes. I’ve seen clients with a 680 score get approved with minimal hassle, and others with a 720 get grilled over a single late payment from years back. Lenders definitely aren’t all playing by the same rulebook. Bigger down payment helps, but I’d say having solid documentation for everything—income, assets, explanations for any dings—makes a difference too. Sometimes I wonder if underwriters just need more coffee before reviewing files...
Title: How tough is it to get a mortgage for a rental if your credit isn’t perfect?
- I get what you’re saying, but I wouldn’t call it a total dice roll. There’s a method to the madness, even if it’s not always obvious.
- In my experience, lenders care a lot about the property itself—if the rental has strong cash flow potential, that can sometimes offset a less-than-stellar score.
- Bigger down payment definitely helps, but I’ve seen folks with 25% down still get pushback if their debt-to-income ratio is off or if they have too many recent credit pulls.
- Documentation is key, but I’d add: be ready to explain any “quirks” in your file, even if they seem minor. Underwriters notice everything.
- Honestly, I think some lenders just have stricter overlays, especially with investment properties. Shopping around makes a difference.
