‘My Credit Doesn’t Matter For a DSCR, Don’t Worry’ This is a MYTH

[Jada Thoele]

‘My Credit Doesn’t Matter For a DSCR, Don’t Worry’ This is a MYTH

*As far as I know at this time*

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DSCR loans are asset-based loans, yes

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However, DSCR lenders are utilizing FICO scores, borrower's experience, and citizenship to weigh the risk factor of the loan.

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Additionally, though your Credit Score is a consideration in qualification for financing that does not mean it would always be subject to a hard pull when closing this loan.

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There are several DSCR lenders in the space whom offer Soft Credit Pulls during a DSCR Refinance or Purchase

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Oftentimes these don’t come with a hit to the rate, as well.

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This is perfect for investors with big ambitions to grow their portfolio aggressively

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No waiting to recover your score in order to buy your next rental!

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Share this for those real estate friends gaining some traction in their journey and help them sky rocket to their goals!

[Patrick Roberts]

Quote from @Chris Seveney:

Quote from @Jason Wray:

Jada,

When it comes to qualifying for a DSCR loan or any mortgage you must have your credit pulled and a "Soft Pull" just means the loan officer is pulling one (1) of the (3) major bureaus. Some DSCR lenders may allow a single pull or "Soft Pull" at initial application but in 99% of the time Banks and Lenders do a "Hard Pull" or have to pull all 3 bureaus to get into final approval/underwriting.

You have to also have a 680+ or better in order to get 80% purchase and 75% LTV cash out refinance. If you want the lowest rate and best options in financing its wise to get your credit scores above 720+ Anything above 720 in most cases is going to help assure the lowest rate and higher LTV's. Anything below 680 is going to either get denied or a horrible rate if approved at all.

DSCR uses the rents to qualify or "Debt Service" the mortgage payment but credit will always be a factor and the higher the credit score the lower the rate. Lower the score the higher the rates....

There ae (3) Bureaus that get monitired Equifax, TransUnion, & Experian and its important to try and keep all of these bureaus above 720+.   This is also important to get qualfied on credit cards, automobile loans, and all loans/mortgages.  

Agree, DSCR absolutely requires decent credit. most do not go below around 660 - some do but you are going to be in double digit rates once your credit score starts hovering in low 6's or high 5's.

 Yep. And the reality is that someone with a FICO with a 5-handle has no business investing - they should be getting their personal finances in order.