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Credit Scores for Investors: What Lenders Actually Check

5 min read

Credit Scores for Investors: What Lenders Actually Check

Most new investors think their credit score is the reason they can't get funded. It's usually not. Investor lending — hard money, DSCR, portfolio loans — doesn't care about your FICO the way a mortgage broker does. But that doesn't mean credit is irrelevant. Here's what actually gets checked and what to fix first.

The score thresholds that matter

  • Below 620: Hard money still possible, but expect higher rates (12%+) and lower LTC (80% instead of 90%). DSCR loans get harder.
  • 620–679: You'll qualify for most hard money and DSCR products at standard pricing.
  • 680–739: Best pricing tier for most non-QM lenders. This is the sweet spot.
  • 740+: Same terms as 680 for most investor loans — the extra points don't buy you much.

    • If you're chasing a 780 FICO before you start investing, you're wasting years. Get to 680 and get started.

    What lenders actually pull

    For hard money and DSCR, most lenders pull a single-bureau soft or hard pull. They're looking for:

  • Recent late payments (last 12 months) — the biggest red flag
  • Open collections over $1,000
  • Bankruptcy or foreclosure in the last 3–4 years
  • Judgment or tax liens — will kill most deals until resolved
  • Revolving utilization — 30%+ hurts pricing

    • Notice what's NOT on the list: total number of accounts, credit age, or hard inquiry count. Those matter for a 30-year Fannie Mae mortgage, not for investor lending.

    The 90-day playbook

    If you're 60–90 days out from your first deal:

  • Pull all three bureaus (Experian, Equifax, TransUnion) at annualcreditreport.com
  • Dispute anything inaccurate — this alone often adds 20–40 points
  • Pay down revolving balances below 30% of limits
  • Do not open new credit — every inquiry costs 3–5 points
  • Do not close old cards — it shortens history and raises utilization

    • What if my score is under 600?

    Two paths:

  • JV with someone who has credit — you bring the deal, they bring the credit. Split the profit.
  • Wholesale — assignment fees don't require any credit. Build capital, fix credit, then flip.

    • Don't wait 18 months to rebuild a score in a market that's moving now. Structure around the constraint.

    The bottom line

    Credit is a filter, not a gate. A 680 FICO with a clean 12 months and a good deal will get funded every time. A 780 FICO with a bad deal won't. Fix what's broken, then focus on finding deals — that's where the money is.

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