Funding Sources without Credit Check

[Kelvin Letron Brantley]

Are there any private funding sources that focus more on the deal than personal credit? Any firm suggestions would be greatly appreciated. Thanks, Letron

[Chris Mason]

Originally posted by @Kelvin Letron Brantley:

Thanks @Chris Mason and @Joel Thompson. Looking for lending options that won't affect my credit. That makes sense if it is a deal with low LTV.

 Just a quick FYI, addressing a misconception that might be there between the lines if I'm reading that right.

• Mortgage credit pulls have the lowest impact on your FICO score of all types of inquiries. People apply for 10 credit cards in a month when they are on a downward spiral financially, and FICO reflects this (this will nuke your FICO score). People apply for mortgages when they are on the up and up, and FICO knows this too (this will be minimal and go away after a few months - call it 2 points for 2 months).
• When you get a new mortgage (ie, when the loan funds and it closes) your FICO score will tank for a few months. Call it 50 points if you're previously sitting at 685. You have $400k in new debt that you have zero track record of paying on time, so temporarily you're a higher risk.
• As you establish a new on time payment history over the next few months, your FICO will bump up higher than that drop, call it 75 points. Net gain.
• All the stuff you read/hear about avoiding credit pulls, avoiding new accounts, etc, is 100% true.... for credit cards. Not for mortgages. 

Most people with 3 or 6 mortgages reporting to their credit have FICOs in the 775 to 825 range even if that is the ONLY credit activity they engage in. When I'm doing the initial conversation with a real estate investor who has 3 or 5 existing properties, I don't even bother asking how their credit is, since I know that as long as they are paying those mortgages on time they will have excellent credit.