WHICH LOCAL BANKS HOLD MORTGAGES IN-HOUSE?

Question

Hi all...

I had a brief question for the vets out here....

Can you provide some info on how to go about finding local banks that hold their mortgages "in-house"?

I've read several posts from novice to seasoned alike, that smaller banks that hold their notes in house, make for much smoother, more flexible loan requirements. 
After several calls, I have found that the "smaller bank experience" was much more personable in answering my questions regarding loan programs, etc.

So, if you guys/girls can provide some info to us novices that will help us going forward, that would be.. 8)

Thanks in Advance,

Jugo

Reginald Esteban · Answer

I got a mortgage from BB&T about 4 years ago and the loan officer stated that they don't sell their mortgages off.

Lynn Z · Answer

I'm not sure what you're looking for when you say "flexible" lender.   Are you trying to buy investment properties right now?

We followed an investor locally to his lender who works for a small community bank who does alot of commercial lending (commercial division).  Two banks, First Community bank and First National Bank (just merged with Carolina National Bank) told me they were interested in commercial type loans.  People that use them for business loans get good rates.   The  lender we use  has extended a line of credit (at prime), and normally doesn't care if you have over  4 mortgages (current limit) and requires less documentation.  He takes a look at the property and does not release rehab money until you've paid the vendors.  He takes a  first mortgage on a paid for property and cross collateralizes the normal 20% down over 15-20 years with a balloon on the other end.   He is more flexible.   He mentioned FICO scores drive what the bank is doing.

Someone once told me that BOA and BB&T were the only banks in my city that were portfolio loan banks.  We used a mortgage broker in December for 4 refis because the rate to refi  was in the 5's and they'd went  stated income.  All of that has changed now though.

Michael Rossi · Answer

I don't know, but it doesn't matter.  The only important thing is to find the portfolio lenders in your area that works with investors.

Having your mortgage sold on the secondary market isn't the issue.  The issue is that the portfolio lenders will be able to make loans that the other lenders can't.

Good Luck,

Mike

Jon Holdman · Answer

Wachovia did six weeks ago.  Not so sure now, due to their recent problems.  Their portfolio product has low closing costs, too, but required one year seasoning.

Shari Posey · Answer

I am pretty sure BofA, Wells Fargo, CitiMortgage, Charles Schwab mortgage--and probably many more--make portfolio loans that don't meet Fanny and Freddie guidelines. I think Countrywide may also.

Julian Barnes · Answer

Thanks for the reply MikeOH...

From my research, (phone calls) I'm having zero luck finding the portfolio lenders here in my city. 
I've done a search on the internet (4 hr search) and have found a PDF with ALL the HardMoney Portfolio Lenders per state.  
I think that's a start....

Here's the link. Can you tell me if this is what I'm looking for? 
http://www.scotsmanguide.com/pdfs/Matrix_Res/HardMoney.pdf

Thanks in advance... :mrgreen:

Jugo
"Think BIG, it's the only way to fly"
-Steve Jobs

Michael Rossi · Answer

No, you are not looking for hard money lenders.

Mike

Julian Barnes · Answer

MIKEOH, Shine...

Thanks for the info guys..
I have made a few calls to some local banks here, and I was told by one of the loan officers that not too many banks are portfolio lenders b/c of the current down market. Is this true? Does this make sense? 
I strongly believe that he was just telling me this to get me into HIS bank...
He mentioned that since the FMae/FMac crash, most investors are buying up these mortgage loans/securities to help strengthen the market and that finding one of these banks these days is going to be hard.

I know portfolio lenders offer better flexibility, but should I be so concerned w/ my mortgage being sold in this market? What are some of its disadvantages? 
Do brokers have access to these types of lenders?  
(I'm going to see my broker Monday)

Thanks in advance...  :mrgreen:

Jugo.

Rob Rey · Answer

often it is the local smaller long established savings and loans or long established credit union

less and less of these

in my particular city, (100K pop) i can only think of three, possibly four that still work this way

a quick phone call is all you need to do

Lynn Z · Answer

Be careful with lender recommendations from the club itself because they have sponsors there at the meetings that they will introduce you to.  You need to ask the individual investor direct who they recommend rather than the club officers.  My club's officers don't even own an investment property.