Case Study: First-Time Investor with 620 Credit Score Success
Updated: October 4, 2024•9 min read•By Capital Bridge Solutions Team
Meet Sarah: First-Time Investor, 620 Credit Score
Background: 32-year-old teacher, self-employed side business, 620 credit score, $45K saved for down payment, denied by 3 conventional lenders
The Challenge
Sarah had been saving for years to buy her first investment property. Despite having $45,000 saved and stable rental income projections, she was repeatedly denied by conventional lenders due to:
- ✗620 credit score (below conventional minimums)
- ✗Self-employed income (complex tax returns)
- ✗High DTI ratio from student loans
The DSCR Loan Solution
Sarah discovered DSCR loans and qualified based on the property's rental income alone:
Loan Details
Property: 3BR/2BA in Phoenix, AZ
Purchase Price: $385,000
Down Payment: $77,000 (20%)
Loan Amount: $308,000
Monthly Rent: $2,400
PITIA: $2,050
DSCR Ratio: 1.17
Interest Rate: 8.25%
The Results (18 Months Later)
$350/mo
Positive Cash Flow
$42K
Equity Built
680
New Credit Score
Sarah's Advice for 620 Credit Investors:
- "Don't let credit score discourage you—DSCR loans focus on property income"
- "Target properties with strong rental demand and good DSCR ratios"
- "Save for 20-25% down payment—it makes approval much easier"
- "Work with lenders who specialize in DSCR loans for 620 credit"
Your Success Story Starts Here
620 credit score? No problem. Get pre-approved for a DSCR loan and start building wealth through real estate.