New to Real Estate · USA · Member since 2020 · 4 posts · 2 votes
I'm am ready to buy my first rental property. I want a multi-family property. I have enough cash for a 25% down payment. My concern is my credit is above 620 but its only recently improved. Its on the way up. I will pursue a conventional loan. So, I'm wondering if my recent credit issues will minimize my chances for an approval? I only want to run my credit once for an approval. I want to know with your expertise do you think I'm ready to move forward?
Rental Property Investor · Branson, MO · Member since 2020 · 46 posts · 15 votes
6y
@George Jackson That's great that you're ready to make your first investment! I would encourage you to call some local banks and let them know your situation. Tell them your credit score and ask them if they think you could get a loan or if you need to raise your credit a little. When I was looking to refinance a loan, most banks said they require a 640 minimum credit score. Have you considered buying a multifamily with an FHA loan and living in one of the units (house hacking)? FHA requires a lower credit score(580) and a lower down payment (3.5%) and you can buy up to a 4-plex with it.