Can I get an investment property loan with a 620 credit score?
Yes: at 620, hard money and some bridge and DSCR lenders will still lend, typically with 30 to 35 percent down, a rate one to three points above what a 720 borrower pays, and closer attention to your housing payment history. Conventional and most bank investment loans start at 660 to 680, so those are usually off the table until the score improves.
Which loans work at 620
| Loan type | Typical minimum score | At 620, expect |
|---|---|---|
| Hard money | None to 600 | Approval based on property equity; 30 to 35 percent down; 11 to 14 percent |
| Bridge loan | 620 to 660 | Some lenders approve with a strong exit; leverage capped near 65 percent |
| DSCR loan | 640 to 680 | A minority of lenders approve; leverage 65 to 70 percent; rate about 1.5 to 3 points higher than at 740 |
| Conventional investment loan | 660 to 680 | Usually declined |
| Bank portfolio loan | 680 and up | Usually declined, relationship exceptions aside |
| SBA | 650 to 680 | Case by case; recent late payments are the bigger problem |
Ranges vary by lender and change as markets move.
What lenders look at beyond the number
Housing payment history. A 620 with no mortgage or rent lates in 24 months reads far better than a 680 with a recent 30-day late. Lenders weight recent housing history heavily.
Why the score is low. High credit card utilization is easy to fix and lenders know it. Collections, charge-offs, or a recent bankruptcy are treated more seriously.
Liquidity. More reserves offset a lower score. Six to twelve months of the full payment changes the conversation.
The property. A rented property with a DSCR of 1.30 supports a lower-score borrower better than a vacant one.
What it costs
On a $400,000 DSCR loan, the difference between a 620 borrower and a 740 borrower can be two points in rate, about $6,000 to $8,000 a year in interest, plus a lower maximum loan amount. On a hard money loan the score barely moves the rate, but the rate is already high.
Raising the score before you apply
- Pay revolving balances below 30 percent of limits, ideally below 10 percent. This can move a score 20 to 50 points in one reporting cycle.
- Do not close old cards. Age and available credit help.
- Dispute errors on all three reports.
- Avoid new inquiries in the 60 days before applying.
- Get a rapid rescore through the lender if a paid balance has not reported yet.
If you can get from 620 to 660, the DSCR pool opens up. From 660 to 700, pricing improves meaningfully.
A common path
Buy with hard money or a bridge loan at 620, rent the property, improve the score during the hold, and refinance into a DSCR loan at 680 or better six to twelve months later. The short-term loan costs more, but it gets the property under contract while the credit repairs.
How CommFi handles it
Our lending desk reads the credit report and the deal together and prices what is possible today, not what a form says. When it fits, the desk funds direct. When it needs a lender that works at 620, the desk searches a database of 7,000+ lenders and puts the file in front of the ones that do. Zero upfront fees.
Related reading
Related questions
- What is the minimum credit score for a DSCR loan?
- Most DSCR lenders start at 660, some at 640, and a few at 620 with lower leverage and a higher rate.
- Can I get a hard money loan with a 620 score?
- Yes. Hard money lenders underwrite the property's equity first and credit lightly. Expect 30 to 35 percent down.
- How much more does a loan cost with a 620 credit score?
- On a DSCR loan, typically 1.5 to 3 points in rate compared with a 740 score, plus a lower maximum loan amount. Hard money pricing barely changes.
- Does a recent late mortgage payment matter more than the score?
- Often, yes. A 30-day mortgage late in the last twelve months can cause a decline even at a higher score, while a clean housing history helps a 620 borrower.
- How fast can I raise my score before applying?
- Paying revolving balances down below 30 percent of limits can move a score 20 to 50 points within one reporting cycle, and a rapid rescore through the lender can update it in days.
Property developer and licensed appraiser. 22+ years in real estate: TIC conversions, multi-unit redevelopments, mixed-use, fix and flips, commercial DSCR.