Loan options for lower credit scores

Fairfax, Virginia
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Loan options for lower credit scores

John Gordon
Member since 2025 · 4 posts · 2 votes

I have a couple of properties that I have my eye on and my credit score is in the low 600s.  My plan is to get it back up to the low 700s as quickly as possible and I don’t want to miss out on these properties.  Are there lenders that focus more on the property than the credit score? The plan would either be to flip it or refi into a long term hold. This isn’t my first flip, just running into road blocks with current lenders and my current score 

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
6mo

You need to fix your credit. Focus on that. There potentially are lenders that will go below 680, but you are going to be paying through the nose and most likely have interest rates in the double digits. You will have a very high down payment, which will not make the project or property viable. 

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  • John Clark
    Member since 2018 · 1k+ posts · 1k+ votes
    6mo

    You leave out the most important fact: Why is your credit score so low? 

    0Reply
  • John Gordon
    OP
    Member since 2025 · 4 posts · 2 votes
    6mo

    Great point. High usage of cards. Paying down the cards below 30% usage will help.  I think the more important question is are there loan options for fix and flips that focus more on the property vs credit score? 

    0Reply
    • Erik EstradaBusiness Member
      Lender · Member since 2022 · 6k+ posts · 1k+ votes
      6mo
      Quote from @John Gordon:

      Great point. High usage of cards. Paying down the cards below 30% usage will help.  I think the more important question is are there loan options for fix and flips that focus more on the property vs credit score? 


       Yes they exist, however you will need to put a larger down payment. Usually 35-50% down. Are you able to get a credit partner? 

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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 513 votes
    6mo

    There are DSCR loan options down to a middle mortgage credit score of 620 or above. For fix and flip loans, generally I've seen down to 680 since it's considered a high risk loan so the credit score for entry is higher to compensate for the risk.

    The credit score will be considered but there are loan options such as fix and flip or DSCR where your personal income is not considered beyond being able to do the down payment and for some loans, have reserves. DSCR loans are structured based off the property actual or projected property rents.

    From what you mentioned, paying down your credit cards may be the quickest way depending on if doable for you in a shorter amount of time to open up more lending options especially for better rates and higher LTVs. Happy to connect to discuss further. 

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  • Jesus SuarezBusiness Member
    Lender · TX, FL · Member since 2025 · 131 posts · 56 votes
    6mo
    Quote from @John Gordon:

    I have a couple of properties that I have my eye on and my credit score is in the low 600s.  My plan is to get it back up to the low 700s as quickly as possible and I don’t want to miss out on these properties.  Are there lenders that focus more on the property than the credit score? The plan would either be to flip it or refi into a long term hold. This isn’t my first flip, just running into road blocks with current lenders and my current score 


    Since you've flipped before, don't sweat the 600 score—you just need to pivot to asset-based lenders who care about the deal, not your credit. Here's the move: Grab it with Hard Money: Use a "Fix & Flip" loan. They fund based on the property's future value (ARV), and many will close at a 600 score because you have a track record. Refi into a DSCR Loan once it's fixed and your score is up, refi into a long-term hold. These loans qualify you based on the rental income of the property, not your personal DTI

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  • Matthew Bernal
    Investor · Austin, TX · Member since 2021 · 497 posts · 127 votes
    6mo

    Yes asset-based and hard money lenders are built exactly for this situation.

    With flip experience and specific deals identified, most hard money programs underwrite to the property — ARV, purchase price, rehab scope, exit strategy. Low 600s won't knock you out the way it would with conventional or DSCR lenders.

    Rates are higher but if the margins work you flip out or refi once credit recovers.

    I work with experienced flippers on bridge and hard money financing and happy to look at your specific deals.

    What does the purchase price and ARV look like on the properties you're watching?

    0Reply
  • Andrew Lee
    Lender · Grasonville, MD · Member since 2025 · 70 posts · 16 votes
    6mo

    Hey John,

    Sent you an DM on this. May be able to help! 

    0Reply
  • Austin ClarenceBusiness Member
    Lender · Phoenix, AZ · Member since 2023 · 136 posts · 32 votes
    6mo

    Yes I have seen approvals down to 500 credit score with DSCR loans. There are fix and flip programs where credit is not even considered too.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    6mo

    You need to fix your credit. Focus on that. There potentially are lenders that will go below 680, but you are going to be paying through the nose and most likely have interest rates in the double digits. You will have a very high down payment, which will not make the project or property viable. 

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  • Joel Farrell
    Member since 2026 · 3 posts · 0 votes
    5mo

    there is a DSCR option that goes down to 620, but requires at least 35% down. if have the money for 35% down, then it might bear a better option to attack the credit utilization with that set of funds. lenders can do a soft pull and provide a credit simulation to show you a roadmap of which accounts to prioritize with pay downs. also, if you have a property that has a lot of equity, you could pull cash out up to 65%, but these are business purpose loans, so technically not supposed to use to pay down personal credit cards, but if you can get a good enough fix and flip deal, get hard money, execute, and then sell, and use the end proceeds to pay down credit cards.

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  • Scott AlfanoBusiness Member
    Lender · Seattle, WA · Member since 2013 · 65 posts · 22 votes
    5mo

    620 is usually the bottom, but there are ways around it too.

    Right now I'm helping a client refinance and their score is in the mid 500s. I had him add a partner into his LLC's operating agreement with at least 20% ownership, who has a credit score around 650. We then use the new partner's score to qualify for credit worthiness and the original partner's experience in flips/investment projects to qualify for experience. Now they're getting a ~$600K loan to do a project where a week earlier he was getting $0.

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  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    5mo
    Quote from @John Gordon:

    I have a couple of properties that I have my eye on and my credit score is in the low 600s.  My plan is to get it back up to the low 700s as quickly as possible and I don’t want to miss out on these properties.  Are there lenders that focus more on the property than the credit score? The plan would either be to flip it or refi into a long term hold. This isn’t my first flip, just running into road blocks with current lenders and my current score 


    You can probably get decent hard money options at that credit score level - which would actually potentially work with your plan/timeline if you buy and rehab for 3-6 months during that time you can work on improving your credit so a DSCR refinance can be an option when the renovations are done

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  • Andrew Lee
    Lender · Grasonville, MD · Member since 2025 · 70 posts · 16 votes
    5mo

    Hi John, I sent you a DM. 

    0Reply
  • Vontay Callahan
    Real Estate Broker · Lincoln, NE · Member since 2026 · 64 posts · 12 votes
    5mo
    Quote from @John Gordon:

    I have a couple of properties that I have my eye on and my credit score is in the low 600s.  My plan is to get it back up to the low 700s as quickly as possible and I don’t want to miss out on these properties.  Are there lenders that focus more on the property than the credit score? The plan would either be to flip it or refi into a long term hold. This isn’t my first flip, just running into road blocks with current lenders and my current score 

    Id love to see what i could do for you if you have some time

    0Reply
  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 653 votes
    5mo

    I know lenders that will do 600 credit.  You'll have to put down more and the rate will be higher, but you can do a no PPP and then in 6 months when your credit is better do a rate-term refi.

    0Reply
  • Nyron Isaac
    Member since 2024 · 144 posts · 28 votes
    3mo

    You don't have to miss out on these deals. Because you have previous flip experience, you are an excellent candidate for asset-based lending. For the acquisition and rehab phase, target Hard Money Lenders. Most institutional hard money lenders have a credit floor of 600–620 and place 90% of their underwriting focus on the property's ARV and your experience level rather than your credit score.

    If you decide to hold long-term, pivot into a DSCR (Debt Service Coverage Ratio) loan. There are specialized non-QM lenders who write DSCR loans down to a 600 score, qualifying the loan purely on whether the rental income covers the mortgage. Just make sure to negotiate a short 1-year prepayment penalty so you can easily refinance into a prime rate tier once your credit bounces back into the 700s

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