Do Private Lenders Require Credit Checks?

If you're a new real estate investor exploring funding options, you've probably wondered: "Do private lenders check your credit?" The short answer? Yes—but it works a little differently than with traditional banks.

Let’s break it down so you know what to expect.

Credit Checks: Yes, But Not Everything

Unlike big banks, private lenders like Alvear Lending aren’t laser-focused on your credit score. We absolutely check it, but it’s just one piece of the puzzle. Our real focus is the deal itself—the numbers, the property, and your exit plan.

Think of it like this:

• Banks = heavy on income verification and credit score

• Private lenders = heavy on asset value and deal potential

Most of our loan programs require a soft credit pull at minimum. It doesn’t ding your score and gives us a quick look at your creditworthiness. For larger loans or more complex deals, we might do a hard pull to dig a little deeper.

Why Credit Still Matters (A Little)

Even though your score isn’t the star of the show, it still plays a supporting role:

• A higher score can mean better terms (lower rates, lower down payment)

• A lower score might mean a higher rate or a larger reserve requirement

• In extreme cases (very poor credit, recent bankruptcies), it could impact approval

So if your score is in the 600s or higher, you’re probably in good shape.

How It Works With Different Loan Types

At Alvear Lending, we work with investors at all stages. Here’s how credit checks play into our main loan programs:

DSCR Loans (Rental Properties)

This one’s popular with newer investors looking to build long-term wealth. DSCR stands for "Debt Service Coverage Ratio" — we mainly care about whether the property's income covers the loan payments.

• Minimum credit: typically 660+

• No income docs required

• Property cash flow matters more than personal finances

Fix and Flip Loans

Buying a property, renovating it, and selling quickly? We’ve got you.

• Soft credit check required

• Score can impact rate and required reserves

• Focus is on ARV (after-repair value) and your budget

New Construction Loans

Building from the ground up?

• Credit check required

• Higher credit scores help, especially with large builds

• Strong experience helps offset a thinner credit profile

Bridge Loans

Need short-term capital fast?

• Credit checked, but speed matters more

• We move quickly based on equity and the deal timeline

Bottom Line

Yes, private lenders like Alvear Lending do check credit—but we don’t obsess over it. We care more about the deal, your experience, and your plan. If you’re just getting started and worried your credit isn’t perfect, don’t stress. There’s probably still a way to make the numbers work.

Want to see what you qualify for? Book a call with us and let’s talk.