Credit score matters less for hard money than for a bank loan, but it is not ignored. Kings of Capital states that underwriting is based on cash, equity, and experience, and that credit is a factor, not decisive. A low score does not close the door on its own. The one exception on its programs is multifamily bridge, which lists a FICO of 650 or higher. All terms are offered only to qualified borrowers and subject to change.
Why Credit Plays a Smaller Role
A hard money loan is secured by real estate. If the borrower cannot repay, the lender can look to the property. That makes the value of the asset the main source of safety.
blanket loans for rental propertiesA bank works the other way around. It wants proof that you can pay from your income, so credit and debt ratios sit at the center of its decision. A hard money lender can accept more variation in a credit history because the collateral carries more of the weight.
That is the idea behind the lender's statement that it lends on the deal. The property, the plan, and the equity come first.
What the Lender Looks At Instead
The program page lists the factors used in underwriting. Credit sits alongside them, not above them.
- Cash and reserves after closing. Equity or down payment in the deal. Track record with similar projects. Property type, condition, and location. Property income, where it applies.
Strong numbers in these areas can offset a weaker score. If you hold solid reserves and put real equity into the deal, the file reads differently than it would on credit alone. For a view of how this works in practice, read how hard money loans weigh credit with other factors.
Where Credit Can Still Hurt
It would be wrong to say credit never matters. It can shape the offer even when it does not decide it. A weak score may lead to a lower loan-to-value ratio, a request for more reserves, or different terms. Readers who want more context can read about property appraisals.
It can also matter for a few specific products. The multifamily bridge program lists a FICO of 650 or higher. That is a stated requirement on the program page, so plan for it if you want a large apartment deal.
Credit history also tells a lender something about habits. A history of missed payments on other loans can raise questions, even in an asset-based review. Be ready to explain it.
What About Past Foreclosures and Short Sales
The lender states that borrowers with past foreclosures, short sales, or credit issues are part of its audience. That is a major difference from a bank, which often applies a long waiting period after those events.
It still helps to be direct. If you had a foreclosure, say so, explain what happened, and show what has changed. A clean recent record plus fresh equity is a good story to tell. Lenders respond better to honest explanations than to surprises that show up late in the file. For general background, see the basics of real estate investing.
For borrowers in this position, one option is the soft money program. The page lists loans from $75K to $5M with up to 80% LTV and a 30-year fixed or ARM structure. Read about how soft money loans work for borrowers with credit challenges to see if it fits.
How Credit Differs by Product
Hard money, fix and flip, and rental loans all treat credit as one input among several. Flippers can see what the fix and flip page weighs besides credit, such as experience and equity.
For long-term rentals, the property income carries a lot of weight. How a rental loan program weighs property income and credit is worth reading if you plan to hold for cash flow. A strong rent roll can help a file that has a few marks on the credit side.
Credit Checks and the First Step
Many investors worry that applying will hurt their score. The first step does not do that. The lender states that the 60-second survey needs no documents, no fees, and no hard credit pull.
That means you can find out where you stand before any score impact. You describe the property, the purpose, and the timeline. A lending expert then returns preliminary terms within one business day.
Later in the process, underwriting may review credit. That is a normal part of a full file, and you should ask the lender when it happens.
Steps That Help Your File
You cannot change your score overnight, but you can strengthen everything around it.
- Build reserves before you apply, and keep them in a visible account. Bring more equity if the score is low. Choose a property with clear value and a short, simple plan. Write down your experience, even if it is limited. Pay down small balances and fix report errors where you can.
Beginners are also welcome. The lender lists beginners with thin credit files among its borrowers. A first deal with strong equity can be the start of a track record. Read what Kings of Capital says about borrowers with thin credit files for more on that.
Credit and Cost
A lower score can affect the price you are quoted. The lender does not publish rates, which are priced to the deal. Ask what drives the pricing on your file, and compare it with the cost of waiting.
Sometimes waiting does make sense. If a few months of work could lift your score and lower your cost, that may beat a rushed deal. At other times a good property cannot wait. Test both paths with numbers. Calculators that show what a higher cost does to your profit make that comparison easier.
Talk It Through
If your score is a worry, ask before you assume. You can book a call to ask how your credit history would be viewed. For a written reply, contact the team to ask what credit means for your deal.
No one can promise approval, and credit is only one part of the review. The program terms mentioned here are offered only to qualified borrowers and subject to change. For advice on repairing credit or on legal matters, consult your CPA or attorney.