Can you get a investment mortgage with a low FICO score?

[Walter Hogan]

Just wondering...   Many lenders advertise that they offer loans based on the deal..... the cash flow, dscr and other data.    But my recent experience seems to indicate that a medium FICO is also a major requirement.   Have anyone gotten a loan with a below 600 FICO score?

Your feedback is greatly appreciated.

Thx

[Jeff S.]

Many larger private/hard money lenders get their money now from Wall Street, insurance companies, and other sources of capital that are virtually unlimited. To attract this money, their lending criteria have become almost indistinguishable from that required by the conventional lenders (min. FICO, multiple appraisals, income requirements, tax returns, etc.). Don’t assume all lenders follow this model, @Walter Hogan.

Many other lenders, such as some syndicated mortgage pools, obtain their money from individual investors, down to smaller mom and pops with significant funds. Within the law, private lenders are free to use any lending criteria and offer any terms they want, so don’t assume that the large lenders represent everyone.

Some lenders do their own valuations. Yet others won’t care about your FICO score. I don’t know how many lenders you’ve spoken to but if you think you can generalize, Walter, you can’t. You just haven’t spoken to enough lenders. Understand that the industry has exploded with all sorts of lending options.

It didn’t use to be, but one of the first questions every borrower should ask a potential lender is where they get their money. The answers will range from Wall Street to those that are self-funded. You’ll also learn who brings no money and brokers loans between parties but are still fiduciaries. Others are affiliates, who might work for several lenders as independent commissioned salespeople with no real responsibility to anyone.

In the end, you’ll want to know who you’re borrowing from, with criteria that fit your objectives.  I suggest you always get as close to the money as you can.

Best of luck to you.