Contractors: This One Credit Mistake Can Kill Your Mortgage Approval
Jan 27, 2026
Many contractors are surprised when they’re told they’re “too leveraged” while trying to buy a home, even with good income and a solid credit score. This video explains what that really means and why using personal credit to buy business equipment can hurt your borrowing power. It also breaks down how lenders look at debt-to-income ratio and why separating business debt from personal debt matters.
Key Takeaways
-
Personal credit used for business equipment limits your mortgage approval. Even if your business makes the payments, it still counts against your personal debt.
-
Financing equipment under your business protects your personal credit and home. Keeping business debt separate helps preserve your buying power and reduces personal risk.
Get your free guide to scaling your hardscape business from our friends at Beacon Funding: http://beaconfunding.com/hardscapementor
Take your hardscaping skills—and your crew—to the next level!
No matter your experience level, we’ve got the training to help you and your team grow. Join today and start building better, faster!