Accepting cash is a terrible idea.I"m less concerned about the credit score as many residents have poor credit.Unless you go through all the steps to qualify them properly, the best steps you can take to avoid financial loss is to not take them on as long-term tenants.

I would recommend reaching out to a local bank or credit union to get this financed.

If you have the $ to put down you should be able to get a loan as long as all of your DTI and credit score stuff is good.

HELOC Lenders and Cash Down:Local credit unions usually offer the best HELOC terms—better than the big banks.

Quote from @Ethan Maciejewski: How do I determine if a tenant should qualify for a resident who has a low credit score but good rental payment history? 

The banker just said that she can see great credit scores, but with the amount of debt, the income doesn't come close to covering the loans.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

I would look at a HELOC first with any local banks/credit unions as sometimes they have unique programs.

Hi Shahab, This is a great question, sounds like you’re setting yourself up really well for your first house hack.There are some flexible funding programs that can work even before your FICO score appears, especially for income-verified buyers with solid payment history and low utilization.I sent you a DM so we can go over what options might fit your situation and next steps you can take while building your credit.

The former would score higher in our analysis (Higher score = better qualified).Thanks for the explanation!