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?
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
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
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 ..
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!