HML with bad credit

[Heather Halman]

I'm looking for recommendations for hard money lenders that operate in Ohio and will work with a credit score below 600. 25%+ downpayment will not be a problem, but I don't think I could make ~50% make sense. Fwiw, credit was destroyed by maxing out credit cards during latest flip. 100% payment history, just didn't consider that high utilization and the hard pulls to get the cards would drop my score by 200 points. The cards will all be paid off and accounts left open once my sale closes tomorrow, but I know it will take some time to get my score back up to acceptable. 

[Jeff S.]

Since around 2016, @Heather Halman, most of the larger lenders get their money from institutional investors such as insurance companies, small banks, Wall Street, etc. With credit checks, tax statements, W2s, etc., their criteria are almost indistinguishable from conventional lenders. You don’t have to put up with that.

Many smaller HMLs won't bother with a credit check. (I wouldn't know what to do with yours if it hit me in the head). Many also do their own evaluations and can fund much faster than the big guys. This can be a big advantage when writing aggressive offers. There are many more advantages to doing business with a small local private/HML, including closer relationships and working with a lender who won't sell the loan.

Go to some local real estate clubs and find your lenders face-to-face. Bring a list of informed questions. Everyone will be different. You should keep a stable of lenders in your back pocket that you can pick and choose from as your deals and their criteria fit.