The DSCR loan myth I keep seeing on here

I keep reading posts where people think DSCR loans don't factor in your personal credit at all. That's wrong. I applied for one last month on a duplex in Tampa with a 680 score and the lender told me they absolutely look at your credit history, just not your W2 income. Why do so many people spread this idea that it's a free pass? Has anyone else run into this and gotten turned down?

2 comments

2 Comments

sageellis3d ago

And this is the same thing that happens with people and credit cards or car loans too honestly. Everyone wants to believe there's a secret hack where the rules don't apply to them, but lenders always find a way to look at your whole picture. Like if you have a bankruptcy last year, they're going to notice even if the loan is based on the property's income.

mia5923d ago

Haha seriously! It's wild how people think DSCR loans are some kind of cheat code. You still need a decent credit score and no major red flags. I've seen folks with recent charge-offs get denied flat out. The lender is still taking a risk on you, just in a different way. It's not a free pass for bad financial habits.