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How credit score affects LTV for DSCR Rental Loans

Trimerge Credit Report

We pull a "trimerge" credit report from all three bureaus -- Experien, Equifax, TransUnion -- and take the middle number. That number plays a major role in determining the LTV (loan to value) we can offer for your DSCR loan.

Max LTV Is Based On DSCR and Credit Score

For our programs, DSCR needs to be 1.2 or higher to qualify for a given LTV. Here's a DSCR calculator we use.

  • Min Score: 680
  • 680 - 699: Max LTV - 10%
  • 700 - 719: Max LTV - 5%
  • 720+: Max LTV

How DSCR Loan Terms Are Impacted By Credit Score

So let's say you want to do a cash out refinance for a $500,000. Our max LTV for a cash out refi is 75%, as long as DSCR is 1.2 or higher at 75% LTV. If the property cash flows support a 75% LTV, but your credit score is 690, your max LTV is 65%. That's the difference between a $375,000 loan and a $325,000.

Credit Score and DSCR Loan Terms

In real estate investing, when borrowing money, one of the most important and overlooked components is credit score. 720+ is the magic number.

Interest rate can also be affected by low credit score. These guidelines don't apply to all lenders but are generally appropriate for expectation setting.