Local Banks and Credit Unions in Central Ohio

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Local Banks and Credit Unions in Central Ohio

Brian Tootle
Rental Property Investor · Columbus, OH · Member since 2018 · 15 posts · 25 votes

I purchased my first investment property a couple of months ago. It's a duplex in Columbus (43204). Both units are vacant and the rehab is almost complete. I am beginning to advertise for renters and am also starting to think about refinancing with a 30-yr mortgage (I used my HELOC to make a cash purchase on the property). My question is: Does anyone have any recommendations as to what local banks or credit unions I should start with? Do any Columbus area investors here on BP have a specific institution they always go to for mortgages?

I've already spoken with Heartland Bank but was not impressed with their terms. They do a 20 year loan with a 7-year fixed rate, then ARM for investment properties. They could also broker my loan (70% LTV) to Quicken for a 30-yr mortgage but my name must be on the title for 6 months first. My goal is to find an institution that will refinance my property ASAP after I purchase it so I can pay off my HELOC and move on to another deal. Thank you for any advice you can give!

Brian

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Eric Veronica
Lender · Cleveland, OH · Member since 2011 · 588 posts · 439 votes
7y

@Andrew Mitchell the last point is relevant if you are attempting to do a cash out refinance with less than 6 months of ownership.  After 6 months the original price is irrelevant.  

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  • Eric Veronica
    Lender · Cleveland, OH · Member since 2011 · 588 posts · 439 votes
    7y

    @Brian Tootle  you should not need to wait 6 months if you work with a lender who will honor the “delayed financing exception”. As a lender I have had no issue honoring this exception but I have been very surprised to find that a lot of lenders will not. 

    The delayed financing exception allows you to pull cash of your home as long as you can source the funds used to purchase the home and pay off any debt associated with the purchase.

    At the refinance closing a check would be issued to your heloc to pay down the outstanding balance of your HELOC. You will be limited to 70% LTV (ARV) for a 2-4 unit (75% if 1 unit).

    One other important thing to note. The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees. Usually this is not an issue unless you have done extensive renovations or you expect a very substantial appreciation. 

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  • Andrew Mitchell
    Member since 2019 · 3 posts · 2 votes
    7y

    @Eric Veronica can you explain the last point a bit more? This seems to contradict everything discussed her on BP about investors being able to cash out any forced appreciation to use in their next deal

    0Reply
  • Eric Veronica
    Lender · Cleveland, OH · Member since 2011 · 588 posts · 439 votes
    7y

    @Andrew Mitchell the last point is relevant if you are attempting to do a cash out refinance with less than 6 months of ownership.  After 6 months the original price is irrelevant.  

    1Reply
  • Andrew Mitchell
    Member since 2019 · 3 posts · 2 votes
    7y

    @Eric Veronica Thanks, Sorry I missed that the first time around!

    0Reply
  • Brandon SturgillBusiness Member
    Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
    7y

    @Brian Tootle PM me and I can send you to a couple options for delayed financing...at least weigh terms with what you've seen already.

    937-979-7000
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  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    7y
    Originally posted by @Brian Tootle:

    I purchased my first investment property a couple of months ago. It's a duplex in Columbus (43204). Both units are vacant and the rehab is almost complete. I am beginning to advertise for renters and am also starting to think about refinancing with a 30-yr mortgage (I used my HELOC to make a cash purchase on the property). My question is: Does anyone have any recommendations as to what local banks or credit unions I should start with? Do any Columbus area investors here on BP have a specific institution they always go to for mortgages?

    I've already spoken with Heartland Bank but was not impressed with their terms. They do a 20 year loan with a 7-year fixed rate, then ARM for investment properties. They could also broker my loan (70% LTV) to Quicken for a 30-yr mortgage but my name must be on the title for 6 months first. My goal is to find an institution that will refinance my property ASAP after I purchase it so I can pay off my HELOC and move on to another deal. Thank you for any advice you can give!

    Brian

     for a duplex i'd do a fannie freddie loan especially without the units being occupied. 

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  • Brian Tootle
    OP
    Rental Property Investor · Columbus, OH · Member since 2018 · 15 posts · 25 votes
    7y

    Thank you everyone for your advice! 

    0Reply
  • David Lucas
    Rental Property Investor · Columbus, OH · Member since 2014 · 63 posts · 9 votes
    7y

    @Brian Tootle message me and I will provide you with a few leads. 

    Thanks,

    David 

    1Reply
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