Finance of America — recent experiences?

10 Replies

I would love to hear from anyone who has used Finance of America within the last few months.

I know their reputation is terrible, you don’t have to tell me that, I’ve read about it.

What I’m specifically looking for is info about recent performance. Are they changing? Getting better? Or staying the same?

Thank you!

Just completed a cash out refinance with Finance of America. Very good experience so far. Quoted and final terms were very close. Nothing to get rattled about. Loan officer answered all questions clearly and no games. Got good APR compared to other companies. And no, I'm a real customer, no shill.

Originally posted by @Peter K. :

Just completed a cash out refinance with Finance of America. Very good experience so far. Quoted and final terms were very close. Nothing to get rattled about. Loan officer answered all questions clearly and no games. Got good APR compared to other companies. And no, I'm a real customer, no shill.

 Thanks Peter!

Originally posted by @Peter K. :

Just completed a cash out refinance with Finance of America. Very good experience so far. Quoted and final terms were very close. Nothing to get rattled about. Loan officer answered all questions clearly and no games. Got good APR compared to other companies. And no, I'm a real customer, no shill.

Hey Peter, did you do the original purchase of your property through FOA's loan program?   

I know this is late, but I hope it helps someone...  I use FoAC for my fix and flips.  I will say that they are still pretty slow to close (they need 21 days).  So sometimes I will have to pay with my own cash out of pocket (if the sale requires a quick close) and then cash-out refi with them a few days later.

The one thing that I can't find anyone that is better than FoAC is their rates ... the lowest loan origination fees and lowest interest rates. I have another source for fix and flip funding if I needed it that can close in 7 days, but they are double the loan origination fee and a couple points higher interest.

Honestly, I recommend setting yourself up with two funding options - one that can fund super quick and only use them when absolutely required and then FoAC to use with more traditional timelines (21 days is still very quick in the grand scheme of things).

I hope this helps!

All depends on what type of financing you're looking for.  I work with multiple lenders for my portfolio depending on the property I'm buying, how quickly I need to close, what LTV I need, length of term, pre pay penalty, purchase or refi, loan amount etc.  The industry is getting interesting.  Definitely getting easier for investors to get financing compared to just a few years ago.  But with more players and more money available...be smart.  Dot your i's and cross your t's.  And work on your credit score to get the best financing available.  Your credit score is key if you're trying to get loans without tax returns or W2's.

@Matt Ferch I think markets can dictate a lot. In one market a lender can excel and in another they can struggle.

@Cassie Montalvo  For example, I think to negotiate the best deals in Florida you need to be able to close purchases inside of 1 week in today's market.  

For long term loans, non-bank lenders who are securitizing will have the best rates.  Currently these may be best for timing to use as refinance loans as opposed to purchase loans.  

P.S. I highly suggest for most investors to seek a full 30 year term as opposed to CMBS financing with 5 / 10 year balloons (meant more for institutional investing).

FACO are flakes. I worked with agent for a month and thought everything was fine. Then, just before close they said they couldn't do the loan. They also want thousands up front in fees for the "credit facility" which is worthless because each deal you bring to them has to be evaluated separately. Hence, all your getting for several thousand dollars with their so called "credit facility" is that they will consider loaning you money for the actual deal.

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