What lender should I use for my first multi family property?

Question

I need some pointers, aside of getting a good rate. What other things when choosing the right lender should I be looking out for ? Im interested in doing a FHA loan.

Brittany Minocchi · Answer

Rate is important, but it isn’t everything. Communication should be a top priority. If someone you reach out to takes days to reply to a text, call or email, is that someone you’ll be comfortable working with and relying on once you’re under contract?

Wilson Feliciano · Answer

I was thinking of going to my personal bank that I've been banking with for at least 22 years. So I'll definitely will consider that, thanks for your recommendation

Zachary Ware · Answer

Alot of FHA will be similar so shopping around online for some big-name lenders could yield the lowest rates. Also, consider reaching out to a local bank/credit union especially if you have an existing relationship.

Jacob Wilhite · Answer

Pick a lender that also keeps your best interest at the top of their mind. You want someone with enough knowledge and experience to be able to guide you along the way and see potential blind spots that you may not realize. Pick someone who will be honest with you even when it is hard or inconvenient. Pick someone with excellent communication skills and gives you updates even when you don’t ask for them. Pick someone who knows the industry and does it themselves as well.

Greg Kasmer · Answer

Wilson - I think the type of property you're investing in with help direct you towards the lender. 2-4 units can be financed with residential lenders, but 5+ units fit the commercial lending criteria. Then, once in commercial lending you have agency loans (Fannie/Freddie) that are typically over $1M (with some requirements) and those multifamily loans <$1M - mostly served by regional banks/credit unions. If you provide more information on the type of multifamily the BP family can help provide additional guidance. Good Luck!

Alecia Loveless · Answer

@Wilson Feliciano I live in a smaller area and have banked with my local lender for 27 years. They keep their loans in house and are excellent at communicating. They work hard for the local community and have been great to work with. I have several bank accounts with them which they also like.

They gave me more competitive interest rates than other banks due to my relationship with them.

I recommend a small lending institution.

They gave me more competitive interest rates than other banks due to my relationship with them.

I recommend a small lending institution.

Robin Simon · Answer

FHA loans are going to be pretty uniform across the board (everyone is lending the same product), so you should shop around, get multiple quotes and go with the lender that offers the best terms (lowest rate) and best responsiveness

Justin Moy · Answer

I was a broker in the past and something that's really strong is to be prequalified with a strong and well known lender with a strong reputation. These types of lenders can give your offer a bit of an edge from the listing broker who is primarily looking for certainty of close

Timothy Hero · Answer

I'm biased, but go DSCR/non-qm. Not on credit, quicker close, fewer docs.

These days, a solid DSCR lender isn't much of a rate increase than conventional, but without all the headaches.

What lender should I use for my first multi family property?

What lender should I use for my first multi family property?

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