Do commercial loans take credit into account when approving loan?

Member since 2021 · 46 posts · 13 votes

Hi,

Recently my credit took a big dip and I was wondering if there are any mortgages to purchase a town home rental based on the deal and not on my personal finances or credit.

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Don KonipolBusiness Member

Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes

Quote from @Abraham Shamosh:

Hi,

Recently my credit took a big dip and I was wondering if there are any mortgages to purchase a town home rental based on the deal and not on my personal finances or credit.

Yes, some hard money loans. But you’ll pay double digit interest rate, short term loan, and stiff points and fees

Private Mortgage Financing Partners, LLC

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Mark Fein
Member since 2022 · 91 posts · 38 votes
3y
In what range is the score?
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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
3y
Quote from @Abraham Shamosh:

Hi,

Recently my credit took a big dip and I was wondering if there are any mortgages to purchase a town home rental based on the deal and not on my personal finances or credit.
Yes, some hard money loans. But you’ll pay double digit interest rate, short term loan, and stiff points and fees
Private Mortgage Financing Partners, LLC
Website View Page
2 Reply
Ben Harvey
Lender · McKinney, TX · Member since 2021 · 22 posts · 7 votes
3y
Quote from @Abraham Shamosh:

Hi,

Recently my credit took a big dip and I was wondering if there are any mortgages to purchase a town home rental based on the deal and not on my personal finances or credit.

Yes, commercial will take into account credit, maybe consider a partnership with someone with good credit, or try building up the credit again.
1 Reply
Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
3y
Quote from @Abraham Shamosh:

Hi,

Recently my credit took a big dip and I was wondering if there are any mortgages to purchase a town home rental based on the deal and not on my personal finances or credit.

Yes credit is a factor. But there are some with a 620 minimum and use DSCR to qualify.
[email protected]818-269-7983
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Abraham Shamosh
OP
Member since 2021 · 46 posts · 13 votes
3y
@mark from

@Mark Fein 620
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Stephanie P.Pro Member
Washington, DC Mortgage Lender/Broker · Member since 2016 · 4k+ posts · 2k+ votes
3y
@Abraham Shamosh
Fix your credit and then buy. Doing it any other way is a recipe for disaster.
2 Reply
Jason Bowden
Member since 2023 · 57 posts · 27 votes
3y
Credit is definitely a factor. I know of a few lenders who will still finance projects at a 620 credit score but getting your credit up will definitely help you. Perhaps look into getting with a credit repair agency.
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David Bilandzija
Lender · Venice, CA · Member since 2021 · 189 posts · 132 votes
3y
@Abraham Shamosh I agree with the other comments - credit is a factor. Once you secure financing it is unlikely the mortgage will get reported to the credit bureaus. It is common practice for lenders not to report mortgages to credit in business purpose/commercial loan space. Good luck pumping the score up in the meantime.
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Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
DSCR lending.
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Jay HurstBusiness Member
Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
3y
Quote from @Eliott Elias:

DSCR lending.

DSCR still looks at credit score.
Hurst Real Estate, INC4.992 Reviews
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