I am an active duty Soldier in the US Army, and I have been trying to buy my first investment property since October 07. My credit score is currently ~580 (due to lack of active credit). I have 20% down, 12 months PITI liquid reserves, no debt and a rock steady job for at least the next 6 years. I have a professional, reputable property management company to do all the dirty work for me since I will be an out of state investor, due to the military. I have not been able to find a financial institution that is willing to accept my “risk.” So now I am just sitting around waiting for my FICO score to come back up. Anyone know lenders with more relaxed standards or any shortcuts to boost my FICO score?
Have you checked with USAA? They don’t loan to entities (LLCs and such) or for >4 units, but if you were looking at getting a smaller building or SFH to start with, they might be able to help. You’d be surprised at how flexible they can be if you call them and tell them your goals.
If you need active credit, start charging some things each month on your credit card and either pay it off each month or carry a small balance. That should help. How many cards do you have? If none or only one, maybe it would help to open another credit account.
Thanks for your service. I’m in the Navy and currently overseas.
Good advice. USAA is a good company to do business with. They also have a bank. Could you borrow $500 and then pay it back over 6 months?
Does USAA only work with military officers or do they also work with enlisted?
Furnishedowner
From USAA’s website regarding eligibility:
Children of USAA members.
Active-duty officers and enlisted personnel.
National Guard and Selected Reserve officers and enlisted personnel.
Officer candidates in commissioning programs (Academy, ROTC, OCS/OTS).
Former military personnel:
Retired officers and enlisted personnel.
Former officers and enlisted personnel who separated on or after 01/01/1996.
Navy Federal Credit Union is also expanding membership to other branches of service now. IMO USAA is FAR SUPERIOR to NFCU in every aspect.
We use USAA for just about everything.