Yes, you can flip houses with bad credit. Traditional banks rely on credit scores, but hard money lenders prioritize the property itself. Local Private Lenders funds deals based on potential profit, not just your personal financial history.
Why Hard Money Lenders Ignore Bad Credit
Hard money loans are “asset-based” loans. The property acts as the collateral that secures the money.
This benefits investors in three ways:
- Focus on Equity: Lenders care if the house has enough equity to cover the loan.
- Speed: We ignore long credit checks to close deals in days, not months.
- Flexibility: We approve loans for investors with past bankruptcies or low credit scores.
If the numbers make sense, we fund the deal.
What Do Lenders Actually Care About?
Since we look past credit scores, we examine the deal’s profitability.
1. The “After Repair Value” (ARV)
We calculate what the home is worth after you fix it. The deal must offer a solid profit margin.
2. Your “Skin in the Game”
Lenders require a down payment. This shows you are committed to the project’s success.
3. Your Exit Strategy
You must show exactly how you will pay us back. Usually, you sell the home or refinance it. Local Private Lenders helps you calculate these numbers before you apply. For more insight on getting a loan with bad credit, read Can You Get a Hard Money Loan in Maryland with Bad Credit?.
Hard Money vs. Traditional Bank Loans
See why investors choose private money for flips.
| Factor | Traditional Bank | Hard Money Lender |
| Primary Criteria | Credit Score / Income | Property Value / Equity |
| Approval Time | 30 – 60 Days | 3 – 7 Days |
| Condition of Home | Must be livable. | We fund “ugly” houses. |
| Bad Credit? | Automatic Denial. | Accepted. |
How to Get Approved With Poor Credit
Follow these steps to secure funding for your next flip.
1. Find a Great Deal
Locate a property priced significantly below market value. The “deal” is your strongest application tool.
2. Prepare a Scope of Work
List every repair you plan to make; detailed estimates show lenders you know your numbers.
3. Partner with Experts
Working with experienced teams builds trust. Our parent company, Brickfront Properties and Construction, provides the construction credibility lenders love to see.
Learn more about managing renovations in our Should I Renovate or Sell in the DMV?
Apply for Funding Today
Do not let a low credit score stop your real estate career. Local Private Lenders looks at the asset, not the past. We provide the capital you need to flip houses successfully.