So if the private hard money lenders are
not worried about it, why are you?
I'm not going to tell you that it may not
affect the terms of your loan, because some
private lenders charge a slightly higher rate while
others couldn't care less. A high credit-score
may move a LTV from 60% to 70% and lengthen terms
from 6 months or 9 months. A low
credit-score may move a LTV from 60% to 50% and
reduce terms from 6 months to 3 months.
That's about it.
So, what do you need to have to counter balance
a low credit-score?
First, you need an excellent property that
can be funded with a low LTV request.
Second, you need a solid exit strategy that
conforms to the terms of the funding so
you don't increase the lender's risk.
Third, if you think your credit-score is too
low, get a free copy of your credit-report
and look for inaccurate or obsolete information.
Then just contact the credit-reporting agency
and give them proof so they can remove-or correct that item.
Did you know that removing one derog can
raise your credit-score 30-points sometimes?
It's worth the time to get on top of it and
it is easy to do.