Is anyone else having a hard time working with lenders recently?

Question

Hey everyone,

I am running into an issue I never had before. I used to contact lenders and they would call me back nonstop looking to do business. Recently (last 3 months), I've been through 4 lenders that barely communicate with me. It is like they aren't really looking to work with me. I am buying single families and duplexes in Georgia with a conventional loan and one just told me that his company can only accept 7% investors and they can't even refinance investment properties right now.

Am I just running into bad luck or is there something else going on that I am only now starting to witness?

Mary M. · Answer

I have currently 18 months of reserves held by a lender as part of the covid lending environment. This was a tough pill to swallow for me as it almost wiped out my cash reserves which to me seems bassakwards - take all the cash an investor has so that if they hit hard times they wont be able to respond nimbly. >shakes head< luckily (knocks on wood) i am sliding by but it was really an u expected requirement and it is a LOT of cash they have as for timing - i have been trying to get a HELOC for over 3 months and it looks like it might finally close!

Everyone is crazy busy!

Winston Covington · Answer

I’ve been in Real Estate as a licensed and active Realtor / Investor since  1978.

Through the years and several market swings, I have observed all types of behaviors

by Lenders. Right now, every Loan Officer I know is swamped with purchases and

refinancing.

Financing for investors is getting tougher to get and the cash reserve requirements

have gotten much more stringent.  A Lender recently told me that Investors are now

required to have a minimum of 6 to12 months cash reserves for each property in their

portfolio.   For Investors with several properties, that requirement can be difficult.

I would suggest speaking with some of the Lender affiliates with Bigger Pockets and

then post a request for Lender referrals from our Bigger Pockets family.

Good luck and I’m sure that you will find a good lender for your portfolio with a

little research.

Jay Hinrichs · Answer

yup fannie and freddie came out with no more than 7% of a lenders loans can be for investors so rates rose and its making qualifying harder and cash out is always dangerous from a lenders perspective.. kind of kills all the BRRRR stuff .. all this will still happen but Biden plan is create more liquidity for owner occ ..

Is anyone else having a hard time working with lenders recently?

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