What If My Credit Isn’t Perfect?

Good news — you don’t need perfect credit to qualify for a loan with LoanGuys.com.

Our investor-focused loan programs, including DSCR (Debt Service Coverage Ratio) and Bank Statement loans, are designed to help borrowers with a wide range of credit profiles.

💡 How Credit Affects Your Loan

While your credit score is still part of the approval process, it’s not the deciding factor.

Because DSCR loans are based primarily on property income, your approval relies more on the deal than on your personal credit history.

Most DSCR programs accept credit scores as low as 620–640, with stronger terms available for 700+.

📊 Typical Credit Score Tiers

Credit Score

Qualification Outcome

Notes

740+

Best rates and max leverage (up to 80% LTV)

Excellent borrower profile

700–739

Standard approval range

Competitive rates and terms

660–699

Acceptable with moderate pricing

May require higher down payment

620–659

Case-by-case approval

Limited loan options but still possible

⚙️ Other Factors That Offset Lower Credit

If your score isn’t ideal, lenders look at compensating strengths in your file, such as:

  • Strong property DSCR (1.25+ ratio)

  • Lower loan-to-value (LTV) — more equity or higher down payment

  • Solid rental history or investment experience

  • Good reserves (cash in the bank after closing)

  • Property located in a stable or appreciating market

Even if your score is below 700, a high DSCR and strong reserves can offset risk and help you qualify easily.

🧩 Improving Your Approval Odds

If you’re close to the cutoff score, here are some quick steps that can help before applying:

  1. Pay down revolving credit balances (especially credit cards).

  2. Avoid opening new credit lines before or during your loan process.

  3. Check your credit report for errors and dispute any inaccuracies.

  4. Keep older accounts open to preserve credit history length.

  5. Maintain on-time payments — even one recent late payment can impact pricing.

🧠 Realistic Expectations

Lower credit doesn’t mean denial — it may just affect:

  • Interest rate: Slightly higher to balance lender risk.

  • Down payment: May increase from 20% to 25–30%.

  • LTV: Could be capped lower for certain property types.

But with strong property cash flow, most investors still qualify easily.

💬 Key Takeaway

You don’t need perfect credit to qualify — you just need a profitable property and a clear financial picture.

LoanGuys.com looks at the full story behind your deal, helping real estate investors get approved even when traditional banks say no.