HML when it comes to your credit score

I have a question regarding your credit score when it comes to HML.

I had inquired on a hml on a website and emailed this particular organization. However because of my “poor” credit score, this particular organization wouldn’t even consider seeing what they could do as far as funding. I was aware of my credit score being low and that possibility being a factor obviously in this case.

My question is, if you’ve found a property and in need of funds, and you have your exit plan (as to what to do with the property, for ex: fix it up & then sell it). You’ve got this plan to sell the property with a very high equity I might add, and this particular organization turned away and told me that they wouldn’t be able to help until my credit score meets their “standards”. I understand risks are involved, but …

If a HML doesn’t always require a “credit check”, then why is a credit score a sore thumb? These HML know all about real estate and know that they will get a nice return in the end. If I find property with quite bit of equity, why should it matter, right? If I am willing to pay up to 18% just to get funds to fund my deal, why does my credit score matter?

Just would like to know, I’ve read different posts that it’s not so hard to get a hard money lender. But in my case, I seem to be running into roadblocks.

Any inputs?

Howdy Lindlo637:

Do not feel like the Lone Ranger. I too contacted several hml’s. Some came back with the same answer you are getting. If I had the scores they wanted then I would just go to the bank. Some wanted 50 to 60% LTV with no rehab money available. Some wanted 20% down and some just 5% if there was good equity.

I understand where most are coming from but some just are overly hard. If there are plenty of borrowers and I have x amount of funds then I would pick the best of the bunch to loan money to as you would as well.

Stop worrying why and keep on applying with different sources. I have even found private investors on my own at 12% for 1st mortgages. Keep looking.

There are severl HMLs in TX and elsewhere that do not even check credit. DHLC is one of them. Look at the listing on this site and call around. Good Luck!


Hi Lindi, I know exactly what you mean because I dont think that there is anyone with worse credit than me, but I found a HML that is willing to help me with favorable terms. Check out my posts and you will see, if you would like more info drop me a line.