Real Estate Investor · Alhambra CA · Member since 2009 · 24 posts · 5 votes
Hi,
I went to Chase Bank today and I asked about pre-approval letter for my potential investment property (I will focus on SFR for my first investment). The loan officer told me that property has to be "habitable" (meaning property has to have carpet, functional Kitchen, bathroom, etc) in order for them to approve the loan. The problem is that the properties I am looking at right now are all REOs, which would require certain extent of rehab. Does this mean that I will not be able to get conventional loans for distressed propertieis through banks? Or is it just that Chase is somewhat not investor-friendly? If banks normally don't lend money for distressed properties, what other ways can I get loans? If anyone can let me know, I will really appreciate it. Thanks!
In the properties we have purchased and resold, our buyers have had a hard time with Chase/Wamu. BofA is more lenient, but they take as much as 60 days. Wells is even tougher than Chase. My buyers have had a good experience with Credit Unions. You're in Burbank so try Lockheed.
I use Chase, too, and I'm surprised they would consider an investment property at all. Must be a recent change.
Its going to be difficult to get a conventional loan for most REOs. You might try to find a local lender who will do construction loans. Or, a lender who will give you a line of credit. Or hard money.
Takeshi, Jon is correct. National lenders do not use their own money. They sell everything on the secondary market to continue to fund the mortgages they lend. This means they only provide loans which Fannie and Freddie authorize. Right now, Fannie and Freddie only have one type of purchase/rehab loan (for single family residential) with scores above 720. However, the underwriting process is arduous and will take about two months. You are much better off researching what your local banks will do for you, and also research the benefits and disadvantages of what hard money loans will do for you. Above all, start going to local real estate investor meetings and continue the learning process.
In the properties we have purchased and resold, our buyers have had a hard time with Chase/Wamu. BofA is more lenient, but they take as much as 60 days. Wells is even tougher than Chase. My buyers have had a good experience with Credit Unions. You're in Burbank so try Lockheed.
I went to Lockheed Credit Union today and they are much better than the Chase. They listen to our needs and they will prepare for the pre-approval letter for us. Thank you very much for referring me to Lockheed Daniel!!
I just refinanced my home and was"under suspicion" for 60 days on a 60 day lock. Full doc but awful. That's with exceptional credit and only mortgage debt. The underwriting and the appraisal process is brutal these days.
I just refinanced my home and was"under suspicion" for 60 days on a 60 day lock. Full doc but awful. That's with exceptional credit and only mortgage debt. The underwriting and the appraisal process is brutal these days.