Rental Property Investor · Cleveland, MN · Member since 2017 · 518 posts · 354 votes
I feel like I'm banging my head against a wall. Every bank I talk to tells me that they can't count my income from my apartment building until I've had it for 2 years, and that they can't count the $110,000 of home equity that I have in my house that is sold on a contract for deed, etc. How can I find a bank that will lend to me? Any good banks in MN, Southwest MN, or even Sioux Falls, SD area? Thanks!
Investor · Springfield, MO · Member since 2012 · 320 posts · 115 votes
9y
@Jennifer Rysdam many banks sell off their loans. You need to look for a portfolio lender who services their own loans and doesn't just sell them off to the big boys. Call around locally and ask each bank if they have a portfolio lender. That would be a good start. Portfolio lenders usually have more leeway.
You could also try to tap into your equity with the home equity line of credit.
If neither of those options are available then look into a private lender or a hard money lender.
Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
9y
A good investor friend of mine said "getting a loan is like having 6 weeks of having the dumbest arguments you've ever heard"
But if I can get a loan you can. My tax returns are worse than a homeless person. Just have to find the right lender. Maybe you're looking at generic vanilla conforming 1-4 family. I find those much harder to get than commercial.
On commercial you deal with an actual LENDER using their brain. On 1-4 family you deal with an ORIGINATOR who has to make sure you fit in a little box so your loan can be sold off.
Investor · Springfield, MO · Member since 2012 · 320 posts · 115 votes
9y
@Jennifer Rysdam many banks sell off their loans. You need to look for a portfolio lender who services their own loans and doesn't just sell them off to the big boys. Call around locally and ask each bank if they have a portfolio lender. That would be a good start. Portfolio lenders usually have more leeway.
You could also try to tap into your equity with the home equity line of credit.
If neither of those options are available then look into a private lender or a hard money lender.
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
9y
Definitely look into a bank or credit union that does portfolio loans (keeps them in house instead of sells them). They can be somewhat rare, but once you find a good one and develop a good history with them, continuing to borrow from them is generally not a big problem.
Shoot me a PM with what exactly you're looking to get financing for. I work with several lenders that have creative workarounds for the more common income qualification issues.
You could try Black Hills Federal Credit Union-they're newer to Sioux Falls. They told me they're looking to "get aggressive" in the market just last week.
Investor · Winchester, VA · Member since 2017 · 104 posts · 70 votes
9y
I just found a portfolio lender in my area that I am meeting with on Friday. They exist even in smaller areas like where I am at. Give the bank a call but make sure you bypass whomever answers the phone as they typically will have no idea what you are talking about.
I feel like I'm banging my head against a wall. Every bank I talk to tells me that they can't count my income from my apartment building until I've had it for 2 years, and that they can't count the $110,000 of home equity that I have in my house that is sold on a contract for deed, etc. How can I find a bank that will lend to me? Any good banks in MN, Southwest MN, or even Sioux Falls, SD area? Thanks!
You need to find a lender that has no OVERLAYS. Both Fannie and Freddie will accept income from rentals after day 1 but the banks that you're talking to have OVERLAYS. I would contact a broker or loan officer that has access to these types of banks or look for banks that use their OWN money. A portfolio loan would be a bank that uses their own money.