Why banks are stricter on rentals, and how asset-based lenders look at credit differently.
It depends on the lender. Banks set minimum scores, and they’re usually stricter for investment properties than for a home you live in. Asset-based lenders like CCIG don’t have a minimum at all.
The short answer: At CCIG, there’s no minimum credit score, and less-than-perfect credit is considered. We still review your credit, but the property drives the decision.
Lenders see rentals as riskier than a primary home. If money gets tight, people tend to protect the house they live in first. So banks often require higher scores, larger down payments, or both for investment properties, and a lower score can mean a higher rate or a flat no.
An asset-based lender’s main protection is the property and the equity in it. Credit is part of the picture, but it isn’t the deciding factor. That’s why a strong deal with real equity can get done even if your score took a hit in the past.
Even without a minimum, better credit generally helps. If you have time before applying:
Applying authorizes a credit report, which may show as a hard inquiry.
Tell us about the property and a CCIG loan specialist will walk you through your options.
