Loan Universe, I am in the process of purchasing a 25-unit multifamily (my first). I have sold some SFH's (investment properties I have flipped in the past year using all Hard Money Lenders--therefore not showing up on my credit report) and looking to put down 15% on this multi-fam. I have never had to go though a any Lender for any financing on any of my RE Investment properties. My score is 645-mid. I have only my home as debt ($110k in equity). I have 2 credit cards less than 6-months old, less than $1000 credit limit combined. I am still going to be holding 3 SFH's with a combined equity of around $100k (each are financed 'Sub2' therefore not on my credit report). I have no late payments on my credit report for over 3 yrs. I still work full time (hopefully that will change soon!) .

How can I raise my credit score to increase my odds of getting approved for this loan?

I will be buying the building 8% - 10% below market value. And because of a hot market will be unable to use many "creative techniques" for financing with the seller. So, I am back to my cash and my score.

Do you have ideas that will help me with raising my score?

P.S. I will be adding your line (HTML script) to my website... Thanks.

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George,


This process takes 30-45 days,once you call I will explain more, If you have other investors that might need my service I have been providing credit consulting now for over 15 years.

I understand credit in many ways, and to get your score higher is no problem.

#1 Question asked in America

How is your Credit ?

Sounds like you may be trying to use traditional bank financing for this purchase....I use several wholesale commercial lenders who would finance this in a heartbeat at 85%, with a 640 + credit score. What is the purchase price of the property, and does the income from the property support the debt? With a little more information I'd be glad to help you with a fast closing.....Also, if you are still interested in improving your credit score, try www.creditboards.com and check out the credit forum for some free advice. Great Site. Contact me if you'd like to go over your options.

MS,
It sounds like your credit problem is not so much bad credit but a lack of credit. The only way you can improve your score quickly is to call your credit card companies and have your credit limits raised and pay off as much as you can on them. Don't close them, just pay them off. Pay as much on them as you can every month. For the long term, you want more accounts on your credit. Stop using hard money, they may offer quick closings, but the rates are insane, and so are the closing costs. If you are a responsible individual who makes regular payments, what is the advantage? The good mortgage history on your credit will improve your scores. Don't go to the other extreme though, too many will effect your ability to get residential financing as a private investor. The number is different with every lender, but having more than 10 financed properties is where we run into trouble. Open more credit cards, take out a HELOC on your house, It's a great source of capital for down payments on other new purchases. Please note however that these are "LONG TERM" solutions, opening a new account will actually hurt your credit score for about 90 days, but then it will start to improve. Your score also takes into account utilization of credit. Installment accounts like mortgages just need to be paid on time, and show some history. Revolving accounts like credit cards and helocs look better with smaller balances since they look at the ratio of balance to credit limit. This may seem crazy, but be careful when paying off derogatory credit. This is better for the long term, abut it actually has a negative immediate effect on your score.

Unfortunately we don't offer commercial financing yet, but we would love to have your residential business if you are buying in Florida. Give me a call

George:

From the point of view of a commercial banker, your credit score of 645 is adequate. The strength of the deal lies on two factors.

1- a debt service coverage from rental income that is sufficient. See http://www.loanuniverse.com/sensitivity.html for details.

2- Enough of a down payment to take the loan to value to 80% or lower.

After that you start looking at the strength of the guarantor {usually the individual behind a real estate holding company created to hold the real estate}. I have done dozens of deals to people reflecting a credit score similar to yours.

can you get a relative to put you on as an authorized user on a credit card?
real fast way to raise credit scores