Leveraging the Highest Credit Score in Multi-Guarantor Deals

Rule

In transactions with multiple guarantors, Lendency leads with the highest representative (median) score among the group to determine the loan’s qualifying tier, provided that score is 660 or greater. However, every individual guarantor on the loan must have a minimum credit score of 600 from at least one repository to remain eligible.

Lendency Insight

Our "Highest Score" policy is designed to help partners win. While we allow you to leverage the 740 score of your strongest partner to get 80% LTV and the best rates, we also maintain a "floor" for the rest of the team. By requiring every guarantor to have at least a 600, we ensure that no member of the sponsorship group has a credit history that poses a significant risk to the loan. This "High Ceiling, Safe Floor" approach allows sophisticated teams to optimize their financing without compromising underwriting integrity.

Common Scenarios & FAQs

• Does the "High Score" partner have to be the 20% owner? Yes. At least one of the guarantors must own 20% or more of the entity, and we use the highest median score from that qualifying group.

• What if one partner has a 580? That partner would be ineligible as a guarantor.

• What is the "Qualifying Score"? This is the highest median score among all eligible guarantors. If this score is 660+, the deal is eligible for our standard DSCR tiers.

Key Definitions

• Median Score: The middle score when ranking your FICO results from TransUnion, Equifax, and Experian.

• Credit Repository: One of the three major bureaus that collect and store credit data (Equifax, Experian, or TransUnion).