Overview
Understanding the minimum credit score requirements is crucial for securing a loan with us. Below, we detail the FICO score thresholds for various loan types and outline additional qualifications for less experienced real estate investors.
Minimum Credit Score Requirements by Loan Type
Fix and Flip: A minimum FICO score of 650 is required with at least 2 completed projects, or 700+ for less experienced investors.
Rent: A minimum FICO score of 680 is required.
Ground Up: A minimum FICO score of 650 is required.
If your score is below these thresholds, you may want to consider bringing on a co-borrower guarantor who has a higher score and/or more experience.
Additional Fix and Flip loan Requirements for Less Experienced Investors
For borrowers or real estate investors with less than two completed projects (1 project), a higher minimum FICO score of 700 is necessary. This change reflects the increased risk associated with less experience in managing and completing real estate projects. Please note, we no longer provide fix and flip loans to borrowers with 0 completed projects.
Strategies for Meeting Qualifications
Partnering with a Co-borrower or Guarantor: If your score is below the required minimum, consider bringing on a co-borrower guarantor who has a higher score and/or more real estate investment experience.
LLC Membership Consideration: If they are a member holding 10% to 19% of the LLC you are applying through, they will not be required to personally guarantee the loan. This allows for more flexibility in your investment strategies
Collaborating with Experienced Parties: Less experienced borrowers can also partner with a General Contractor (GC) or another experienced investor. This partnership can help fulfill the experience requirement and enhance the viability of your project proposal.
Additional Information
Meeting these credit and experience requirements is essential for ensuring the success and sustainability of your real estate investments with us. If you have any questions or need further clarification on qualifying for a loan, please reach out to our support team.