Bad Credit Commercial Loans in Texas — It’s Not a Dealbreaker
Texas commercial lenders evaluate deals differently than residential mortgage lenders. With the right program, bad credit is not an automatic denial. Here’s how to structure a deal that gets funded even with a 500–580 credit score.
Programs That Work With Bad Credit
| Program | Credit Requirement | LTV |
|---|---|---|
| Hard Money | None (asset-based) | Up to 70% |
| Stated Income | 580+ | Up to 75% |
| DSCR | 620+ | Up to 75% |
| Private Bridge | None | Up to 65% |
Compensating Factors That Help
Even with bad credit, lenders like us look favorably at: larger down payment (30–40%), strong property income (DSCR ≥ 1.25), significant equity in other properties, clean rental history, and a clear explanation letter for past credit events (medical, divorce, business failure).
What About Bankruptcy?
Chapter 7 discharged more than 2 years ago: hard money and stated income programs are available. Chapter 13 with on-time payment history: some programs consider this. Active bankruptcy: hard money only with trustee approval.
Get a free quote — no credit pull. Tell us your situation and we’ll tell you exactly what’s available.