5% down first homeowners loan.

This is really disappointing because I am ready to purchase another property today but will not get approved or have horrible loan terms due to a 640 credit score.Does anyone have any recommendations on how to remediate this issue?

I will layout some information below and I am all ears to advice from there.Current savings: $12,500 (with the capability to pull funds from an IRA if need be)Currently working with a realtor I've worked with before in my rental market who is also an active investorI have the proper steps completed for a DSCR loan from a company found right here at BP and the process was smooth. 

The only details I have currently are that he placed 10% down 5 years ago so is currently paying PMI on his loan.

Or consider a hard money loan to help with your first flip.

having trouble getting a home equity loan due to my work situation. 

I know a lot of first time buyer loans want you to stay in the home.

Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit.

@Roger West You should have no problem getting a construction-to-perm loan. 

The bottom line is you shouldn't use any of these strategies without proper education or hiring a competent person to guide you AND you should have the ability to reposition the debt IF the sellers lender calls the loan due.