No Banks or CUs offering mortgages for investment properties?

Question

So over the past 24 hours I've called and emailed a dozen banks, both in my geographic local area, and the area I am currently looking to grab another property in (Central FL), and every single one has informed me that they are not accepting applications for investment properties, only primary residences at this time.

Looking to take advantage of the low rates to pickup another property or two, but this is a significant stumbling block.

I have inquiries out to the two agents I've worked with down there as well - hopefully they come up with something more fruitful.

Is anyone else running into this problem lately? I'm primarily a buy and hold / LTR investor, so going private or hard money isn't exactly part of my typical strategy.

Matt J. · Answer

@R.J. Petrillo I don’t know your market but find this hard to believe. With 20-25% down you should be able to get a loan no problem. Call your local Credit Union, I have several residential and commercial loans with them. A couple of them were obtained in the last month.

Good luck, don’t give up.

Raymond J. Rodrigues · Answer

@R.J. Petrillo haven’t really experienced that as of yet.

Brock Mogensen · Answer

I have not experienced that recently. The local banks in my area (Milwaukee) are more than willing to lend on investment properties. Rates and terms are great with local banks right now. I'm hoping reserve requirements on agency debt return to the norm soon though..

Sara K. · Answer

I’m in the same area, no problem here. I always use Homebridge. PM me if you want a specific (great) contact. They do 15% down loan for investment properties as well.

Stephanie P. · Answer

Crescent Mortgage. PM for a contact there.

Stephanie

R.J. Petrillo · Answer

Thanks Matt & Raymond. I'm continuing to hit the metaphoric pavement so to speak - reaching out to more folks until someone at least will process an application - but it seems official policy is to not process mortgages for investment properties. Two of the bankers I spoke with even said they themselves were unable to get mortgages with their own employers for deals they were looking at - they were not forthcoming as to who they did ultimately go with - but they did let me know that it was for in-state properties, and likely would not aid in out of state purchases.

Fingers Crossed. I've funneled down >50 deals into 2 or 3 that seem worthwhile. Would love to be able to put in an offer on at least one of them this summer.

No Banks or CUs offering mortgages for investment properties?

No Banks or CUs offering mortgages for investment properties?

Most Popular Reply

8 Replies