Bad Credit Investment Property Loans — We Still Lend
Most lenders stop at 620. We don’t. We offer investment property loans for borrowers with credit scores below 620 — including recent bankruptcies, foreclosures, short sales, and late payments. Asset-based programs mean the property’s value matters more than your credit history.
Bad Credit Loan Highlights
- Credit scores from 500+ on hard money programs
- Recent bankruptcy (as little as 1 day out of discharge on some programs)
- Foreclosure and short sale OK — even recent
- No minimum credit on pure asset-based programs
- Non-owner-occupied investment properties only
- Up to 65–70% LTV depending on credit and property
- Close in 7–14 business days
- Loan amounts from $75,000 to $3M+
- Texas and 45 states
How We Lend When Your Credit Is Damaged
Traditional lenders use credit scores as a proxy for risk. We use equity. If you’re putting 30–40% down on a solid property in a good market, the deal makes sense whether your FICO is 780 or 520. Our hard money and asset-based programs evaluate: the property value, the loan-to-value ratio, and your exit strategy — in that order.
What Credit Events We Work With
Bankruptcy
Chapter 7 or Chapter 13. Some programs available immediately after discharge. Most require 6–24 months seasoning. The more equity in the deal, the shorter the wait.
Foreclosure
Prior foreclosure does not automatically disqualify you. Hard money programs can fund within 1–2 years of foreclosure. DSCR programs typically require 3–4 years.
Short Sale
Similar to foreclosure — hard money programs are most flexible. 2–3 year seasoning on DSCR/conventional. No waiting period on pure asset-based programs.
Late Payments
Recent 30/60/90-day lates hurt your score but don’t necessarily kill a hard money approval. We look at the full picture — one rough year shouldn’t disqualify a solid deal.
Credit Score vs. LTV — How It Affects Your Loan
| Credit Score | Program Available | Max LTV | Rate Range | Close Time |
|---|---|---|---|---|
| 680+ | DSCR 30-yr fixed | 80% | 7.5% – 9.5% | 14–21 days |
| 640–679 | DSCR (slightly higher rate) | 75% | 8.5% – 10% | 14–21 days |
| 600–639 | Hard money or DSCR (select) | 70% | 9% – 12% | 7–14 days |
| 560–599 | Hard money | 65% | 10% – 13% | 7–14 days |
| 500–559 | Hard money (strong equity required) | 55–60% | 11% – 14% | 7–14 days |
| No score / no pull | Pure asset-based (select programs) | 50–60% | 12% – 14% | 7–10 days |
How to Strengthen a Bad Credit Loan Application
- More equity: The single biggest factor. 40% down on a clean property at 560 FICO is fundable. 20% down at 560 FICO usually isn’t.
- Strong property: Good location, good condition, clear comparable sales. Distressed credit + distressed property = very hard to fund. Pick one.
- Clear exit strategy: How will you pay off the loan? Sell, refinance, rental income? The clearer your exit, the more comfortable we are with weaker credit.
- Experience: Prior successful flips or rental ownership helps offset credit concerns, especially for hard money programs.
- No recent major derogatories: A bankruptcy from 3 years ago is different from a foreclosure last month. Seasoning matters.
Bad Credit Investor Loan FAQ
Is there a minimum credit score?
On hard money programs, no — some programs don’t require a credit pull at all. On DSCR programs, the minimum is typically 620. The lower the credit score, the more equity we require in the deal. There is no universal cutoff — tell us your situation and we’ll tell you what’s possible.
Can I get a loan the day after bankruptcy discharge?
On pure asset-based hard money programs, yes — there is no mandatory waiting period. The loan is underwritten on the property’s value and your equity contribution, not your credit history. Rates will be higher and LTV lower immediately post-discharge, but funding is possible. Most borrowers wait 6–12 months to rebuild credit before seeking better terms.
Will you pull my credit?
On most programs, yes — a soft or hard pull is part of underwriting. On pure asset-based programs (no minimum credit), we may underwrite without a pull. Either way, we will never pull your credit without your explicit permission. Our initial quote is based on the deal, not your credit — you control when the pull happens.
Can I refinance into a better rate once my credit improves?
Yes — and this is a common strategy. Start with hard money or a high-rate bridge loan while your credit recovers, then refinance to a DSCR 30-year fixed once you hit 640+. We can help with both the initial loan and the refi. The property stays in your portfolio the entire time.
Credit isn’t perfect? That doesn’t mean you can’t invest. Tell us about your deal and we’ll find a program — or call 877-895-3634.