Personal Credit vs. Business Credit?

Question

Hi All - does anyone have a recommendation for DSCR loans that use business credit rating for qualifying instead of personal credit scores?

I’m trying to do a cash out refi, but my personal credit usage is a little high at the moment and it’s holding me back from getting the best options.

I’d like to separate my personal finances from my business finance as much as possible.

I have equity in my portfolio and a good DUNS score.

Rick Matinez · Answer

Lender here - DSCR will always pull personal credit, DUNS doesn't work for DSCR.

What I do for investors like you is an unsecured business loan with no dow payment ., then you get better DSCR terms.

Nicholas Floyd · Answer

Lisa, you’re definitely thinking in the right direction by wanting to separate your personal and business finances. The challenge is that most DSCR lenders still consider personal credit, even when you’re borrowing through an LLC. A strong DUNS score is helpful, but it usually won’t replace that requirement.

The good thing is you already have equity in your portfolio. Depending on your loan-to-value ratio and rental income, there may be lenders willing to work with higher personal credit utilization.

I specialize in business funding, including business lines of credit, business loans, SBA financing, and revenue-based funding. Some of these options can help business owners access capital without adding utilization to their personal credit reports, although they work differently from a cash-out refinance.

Have you explored lenders that offer more flexible DSCR requirements, or has everyone you’ve spoken with focused primarily on your personal credit score?

Joe Piccirello · Answer

Hi Lisa! I completely understand your frustration. You’ve worked hard to build equity in your portfolio, and it’s frustrating when personal credit utilization limits how much of that equity you can access.

I saw that getting to 80% LTV is really your priority, and I think there may be a few options worth exploring before you settle for less.

I’m a mortgage broker, and one of the advantages of what I do is having access to multiple lenders with different guidelines. Not every DSCR lender looks at credit scores, cash-out limits, and rental property income the same way.

While most DSCR lenders still consider personal credit, some have more flexibility than others. I’d love to take a closer look at your situation and see whether one of the lenders I work with might be a better fit.

Depending on your current score, property values, rental income, and existing mortgages, we may be able to find a solution that gets you closer to your goal. I’d also be happy to explore whether making a few adjustments to your credit utilization could open up additional options.

I don’t want to promise something without seeing the numbers, but I’d genuinely enjoy helping you explore what’s possible.

Feel free to message me if you’d like another set of eyes on your situation. I’d be happy to help!

Lisa Benbrook · Answer

Yes, I know my utilization is the primary culprit. I’m not too worried about the rates as much as the LTV. I’d like 80% but my score is not high enough at the moment. There needs to be a score model for REI 😂 the FICO and other lending scoring models aren’t built for our space.

Derek Brickley · Answer

Hey Lisa!

Rick is right that DSCR still pulls your personal credit, even with a strong DUNS. Since you need the cash out to clean up the cards anyway, I'd take the cash out now with your current scores, just make sure it has no prepayment penalty. Use the proceeds to pay down the accounts, let your scores recover, then refinance into something more stable with better terms. A lot of DSCR loans come with a 3 to 5 year prepay by default, so ask for the no prepay option up front even if it costs a little more in rate.

LaTarence Dunbar · Answer

Hi Lisa, I’m LaTarence Dunbar, a private lender focused on real estate financing. I understand your goal of leveraging your portfolio’s equity while keeping your personal and business finances separate. I’d be glad to connect, learn more about your portfolio and cash-out refi goals, and see whether I may be able to help with a suitable financing solution. Looking forward to connecting with you!

Jiao Liu · Answer

Hi Lisa — I can run the cash-out. On structure: for 1–4 unit properties, cash-out goes to 75% LTV with a 660+ score. For 5+ unit properties, I have a program with no minimum credit score — it's underwritten on the property's DSCR (1.20+).

To price yours, I need: your score range right now, how many units and what type the properties are, total value, what you owe, and how much cash you want out.

Send me those and I'll tell you exactly where you land.

— Jiao

Lee Burns · Answer

Hi Joe, I'm in the same situation, ha. I'll send a connection request and would love to learn more

Stacy Raskin · Answer

Generally, DSCR loans will will require a personal guarantor and a personal credit score to be used even when vesting in an LLC. Happy to connect to discuss further.

Gregory Acs · Answer

Hi Lisa, most DSCR lenders still consider personal credit scores, even when the property is owned through an LLC. A strong business credit profile can help in some situations, but it usually won't replace personal credit requirements.

That said, different lenders have different credit score and cash-out refinance guidelines, so comparing options could be worthwhile. Have you checked whether your current credit utilization is affecting your score or just the rates you've been offered?

Personal Credit vs. Business Credit?

Personal Credit vs. Business Credit?

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