Workarounds and Exceptions WhenWorking with a Lender


by Nate Zielinski, RCN Capital

difference between a 640 FICO Score and a 720 on a long-term loan can be as much as 15-20% LTV and could significantly lower the interest rate. A final reason pulling in a part - ner with a higher FICO score makes sense is to just surround yourself with more experience. If you have a partner with a higher FICO score and more experience than you, your rates and leverages will improve, and you can qualify for other loan programs such as heavy rehab projects or ground up construction. As an investor, you can drastically broaden your search for proper- ties and expectations if you have a partner with a higher FICO score. You can even lean on them for advice when it comes to ways to improve your FICO score. Just because they are your partner on one deal and

hen applying for a loan in the hopes of securing a real estate investment property, there are always lender guidelines to keep in mind. These guidelines are crucial as they allow lenders to set a baseline of expectations for borrowers to meet when starting the application process. However, it can often be a smart decision to ask if a lender is able to offer or willing to discuss exceptions or workarounds for certain scenar- ios. If the lender shows extra effort and wants to come up with solutions to try and do business with an inves- tor, it is a great sign that you are speaking to the right one. Here are a few workarounds and exceptions to keep in mind that RCN Capital offers and ones that other lenders may as well. W

PULLING IN A PARTNER WITH AHIGHER FICO SCORE One of the most basic guidelines when working with a lender is ensur- ing that you have a high enough FICO score that meets their minimum requirement. For new investors who are unaware that the FICO score would be a requirement, this is a common speed bump on the road to getting approved for a loan. If your credit score is too low, then recruit a partner with a credit score that meets the minimum requirement and get your loan back on track. Another overlooked strategy when it comes to bringing in a partner with a higher FICO score is just securing a better loan than the one you would have with your own credit score. This will come into play specifically for RCN’s long-term loan option. The

32 | think realty magazine :: august 2021

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