This is my experience financing rentals while rebuilding credit. Approval and loan terms depend on the lender, property and borrower.
In 2023, I financed my first rental with a 590 mortgage score. Many banks I spoke with wanted roughly 680. My nine-to-five income supported the application, and I put 20% down. The loan was 15 years at 7.5%.
I have since bought 24 more properties, bringing my portfolio to 25. My later financing rate is 7%. Local banks helped me get started; a larger bank became a better fit as the portfolio grew.
In this article
The phone script I used to start the conversation
Here is the approach I used, with placeholders you can adapt to your own situation:
“Hey, I’m a real estate investor looking to purchase another property or refinance a property. I have [number] houses and would like to know your terms. Being completely upfront, my mortgage score is [score] due to a few late payments from years ago. Does your bank have a hard minimum on that, or could you consider my application with supporting financials?”
Adapt the script to your actual property count and credit history. For a first purchase, say you are looking to buy your first rental.
I searched for banks that wanted to lend in my area
My real estate agent and Facebook investor groups pointed me toward banks actively lending in my area. The most useful conversations were with small to mid-size local banks.
They gave me room to explain my income and credit history. My score still mattered, but it was not the only part of the application they could consider.
I called multiple banks and explained my score before applying
I called multiple banks, gave them my mortgage score and explained the old late payments. Then I asked whether my income and supporting financials made the application worth considering.
Many said they could consider it. That opened a conversation; it was not a loan approval.
Knowing my score and being honest about it made me feel more credible. Those early calls also helped me avoid unnecessary inquiries with lenders whose requirements I could not meet.
Credit-check note: Ask whether the next step requires a soft or hard inquiry. The bank may need its own report, and its score may differ from yours.
The CFPB explains rate-shopping protections: same-type loan inquiries are generally grouped for scoring within 14–45 days, depending on the model. Individual inquiries still appear, and rental business loans may be treated differently from consumer mortgages.
I aimed to speak with at least the VP of lending
I looked up the lending team online and aimed to speak with at least the VP of lending. In my experience, people below that level typically could not move the low-score conversation forward.
Ask for the person who can review your type of loan and a score below the usual target. Authority varies by bank; a VP’s title does not guarantee an exception.
My first loan: the actual numbers
| Part of the application or loan | My experience |
|---|---|
| Year | 2023 |
| Mortgage credit score | 590 |
| Income supporting the application | A good nine-to-five job |
| Down payment | 20% |
| Interest rate | 7.5% |
| Loan length | 15 years |
My employment income and 20% down payment gave the bank more to evaluate alongside the 590 score.
The downside: I could hit a limit at one or two properties
The smaller banks I used typically capped me at one or two properties. They helped me grow, but I needed to understand how far each relationship could take me.
Ask whether a limit comes from property count, total borrowing, your finances or the bank’s exposure to one borrower.
Once I had an established portfolio, I moved to a larger bank
Once I had an established portfolio, I combined properties into one loan at a larger bank. My later rate was 7%, compared with 7.5% on the first loan. The local banks had served their purpose while I was growing.
A lower rate is only part of the comparison: balances, fees and repayment terms affect the total cost. A future refinance also depends on approval and the terms available then.
For a loan secured by multiple properties, ask how you can sell or refinance one property, what a release costs, and which properties secure the debt. Check fees, repayment terms and any balloon payment.
Can the rental afford the loan?
Include the payment, operating expenses and reserves when comparing a purchase or refinance.
Use the free rental cash-flow calculator →Questions I would bring to the first call
- Do you currently lend on rental properties in this area?
- Is your credit-score minimum fixed, or can you review the overall application?
- Who has authority to assess a situation below your usual score target?
- Will this initial step require a hard inquiry?
- What income, rental and financial records would you need?
- How many properties or how much total borrowing could this relationship support?
- What are the down payment, reserves, fees, repayment term and any balloon requirements?
Use the answers to decide whether to apply, then evaluate the written offer against the property’s numbers.
My FHA home purchase was a separate part of the story
I bought my personal home with an FHA loan in 2025 and am now seeing improvement in my mortgage score. That purchase was separate from the local-bank strategy I used for rentals.
Ask about the loan program and occupancy requirements for the property you intend to buy. My FHA purchase was a home to live in, not a separate investment property.
For the other half of this story, read how my credit score went from the 500s to around 700. For a wider comparison of financing approaches, see local banks versus hard money and larger banks.
The approach that helped me was straightforward: bring accurate numbers, explain the credit history, reach the lending decision-maker and understand how far that bank can grow with you.
By Josie. Updated October 9, 2026. Personal experience and educational information; approval, rates and refinancing outcomes vary.