What Gets Your Deal Funded and What Kills It
Most investors assume financing comes down to credit. It doesn't. Here's what lenders are really evaluating:
1. Credit score — but it's rarely a hard cutoff Higher FICO = more options and better terms. But some loan types qualify below 700 on qualifying deals.
2. The property's income (for rentals) DSCR loans qualify on what the property earns, not your personal income. If the rent covers the debt, that matters more than your W-2.
3. Your experience level (for fix and flip) First-timers can still get funded. But a solid track record unlocks better leverage — sometimes up to 100% of purchase + rehab on qualifying deals.
4. ARV, not just purchase price Fix and flip lenders underwrite to what the property is worth after renovation. A strong ARV can make a high-purchase-price deal work.
5. Your exit strategy Selling? Refinancing? Lenders want a realistic plan for how they get repaid.
Most deal failures at the financing stage aren't bad credit — they're the wrong loan for the strategy.
What's the biggest financing obstacle you've hit on a deal?
- Joyce Ann Magallanes
- [email protected]
- (646) 914-9393
