FINANCING

What Credit Score Do You Need for an Investment Property?

Updated March 2026

Conventional: 620-740+

Most lenders want 660+ for investment properties. But your rate varies dramatically with score. At 660: 7.5% with 25% down. At 740+: 6.75% with 20% down. On a \$200K property, that rate difference saves \$120/month — which is the entire cash flow margin on some deals. Your score directly determines whether a deal works.

DSCR: 660-700+

DSCR lenders are flexible on income docs but still care about credit. Most require 660+ minimum. Below 680, expect 25-30% down and 8%+ interest. Above 720, sometimes 80% LTV near 7%. Since DSCR loans already cost more than conventional, your credit score is the biggest lever for better terms.

Hard Money: 600 or Lower

Hard money lenders care about the deal, not you. Many lend at scores in the low 600s if the property has enough equity. The trade-off: 10-14% interest with 2-4 points. Only makes sense for short-term holds — fix-and-flip or BRRRR refinance within 6-12 months.

FHA House Hack: 580+

Willing to live in the property? FHA is the cheat code. 580 score minimum, 3.5% down. Buy a duplex or fourplex, live in one unit, rent the others. Owner-occupied rates with a tiny down payment. You must live there 12+ months. Best first move for investors with limited cash.