Flip lenders look at the deal and your track record first, but credit still sets the floor. Here is what a lower score changes and what you can do about it.
In short: LendingStreet fix and flip loans require a minimum credit score of 620, so scores below that do not qualify on our programs. Between 620 and the mid-600s, approval is possible, but you should expect lower leverage, a higher rate or both, and your flip experience carries more weight. Experience, extra equity in the deal and strong cash reserves can offset weaker credit. Recent foreclosures, bankruptcies or short sales may disqualify you for a period, and those waiting periods vary by program.
Our fix and flip programs start at a 620 credit score. That is a hard minimum, not a target. If your middle score is below 620, the best move is to work on credit first or bring in a partner whose credit qualifies.
Many investors who think they have bad credit are actually in the 620s or low 600s. Pull your scores before you assume you are out.
Credit does not usually decide whether a flip loan is possible once you clear the floor. It decides how much risk the lender will take on you.
Below are the most common effects of a score in the low-to-mid 600s compared with a stronger score. The exact differences vary by program.
This example is illustrative and not a quote. An investor buys a house for $220,000 with a $50,000 rehab budget.
With stronger credit and experience, the loan covers 90% of purchase ($198,000) plus 100% of rehab ($50,000), or $248,000. The down payment is $22,000. At a sample rate of 9.99%, interest on the full balance is about $2,065 a month.
With a 640 score, assume the program finances 80% of purchase ($176,000) plus 100% of rehab ($50,000), or $226,000. The down payment doubles to $44,000. At a sample rate of 11.49%, interest on the full balance is about $2,164 a month. Closing costs are extra in both cases.
| Stronger credit | 640 credit | |
|---|---|---|
| Purchase leverage | 90% | 80% |
| Purchase portion of loan | $198,000 | $176,000 |
| Rehab portion (100%) | $50,000 | $50,000 |
| Total loan | $248,000 | $226,000 |
| Down payment | $22,000 | $44,000 |
| Sample rate | 9.99% | 11.49% |
| Monthly interest, full balance | about $2,065 | about $2,164 |
Lenders look for reasons to say yes. If your score is near the floor, strengthen the rest of the file.
Recent major credit events matter more than the score itself. A foreclosure, bankruptcy, short sale or deed-in-lieu inside a program's waiting period can disqualify an application even if the score clears 620.
Waiting periods vary by program and event type, so tell our financing team about any past events up front. Open judgments, tax liens or unresolved collections can also hold up approval until they are addressed.
Small changes before you apply can move your score and your terms.
Bring your estimated credit score, the purchase contract, a line-item rehab budget, your ARV estimate with comps, bank statements showing cash to close and reserves, entity documents and your track record.
Our financing team reviews the full scenario, not just the score, and comes back with 2–3 options if the deal qualifies.
620 on our programs. Scores below 620 do not qualify, and higher scores generally get better leverage and pricing.
Not on our programs. Consider improving your score or adding a partner whose credit qualifies, if the program allows a guarantor.
Yes. Credit is reviewed along with experience, the deal and your cash reserves. The deal matters a lot, but credit sets the floor.
Possibly, once the program's waiting period has passed. Waiting periods vary by program and event, so share the details early.
Usually. Rates start at 9.99% for qualified borrowers, and lower scores typically price higher and may get less leverage.
It is harder. First-time flippers can qualify on some programs, but combining no experience with a score near 620 limits options. Extra equity and reserves help.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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