Real Estate Investor · Berkley, MI · Member since 2014 · 52 posts · 14 votes
Hi All,
I've been in the states for about 3 years now, but have only really built up about a year and a half worth of credit. My credit score itself is excellent, and everything else, job history, income, reserves etc are A+, but because the history is so limited, the underwriters are unwilling to book my refinance loan at the moment.
I understand that if I was asking for a loan for a conventional owner occupier it's easier, but apparently they are more picky with investment properties.
Short of waiting for another year or two to build up some history, what are my options?
Real Estate Investor · Berkley, MI · Member since 2014 · 52 posts · 14 votes
11y
The problem with private money sources is that they tend to be quite high interest rates and many properties won't cash flow with high rates. I did speak with a few people about this and I've found a few ways out which I'm investigating
* You can adjust your credit history with additional trade lines.
* I've heard there are other lenders who will provide short term loans that are amortized over 30yrs, but due in a shorter period of time with a big balloon payment. So that would buy you the time required to build up a credit history.
Are you implying by "refinance" that you already have a loan on the property or did you purchase it all cash? Generally, if you have high scores and established trade lines, then you should be able to get financing. Usually the income has to be at least 2 years.
I purchased it all cash. I have high scores (730+), but my tradelines are only a year and a half old. My primary source of income is my job and I've been there for a long time.
Gotcha. Now I see where the difficulty lies. The current value of the property would make for a low loan amount. It's hard to get loans from banks for these low amounts. At that point, the low interest rates are gone. Your next option would be private money, which as you already know, is more expensive.