Buy and hold lender - What rates and terms are people seeing?

10 Replies

I am looking for a lender to refi cash out a few properties.  Seasoning is also going to be challenge as well.

What rates and terms are people seeing?

5.5% 30 year fixed for a four plex refi (investment property, not primary residence). Rates are up about 0.5% since July/August. Usually, 6 months seasoning is required. This is a conventional loan. 

My portfolio lender offers a 5/25 with a rate based on the 5 year treasury yield + 3% (~6% today).

The difference in rate is not that much, but since this property is on my personal name (rare), I’ll go with the conventional loan. Securing a 30 year fixed rate vs. a loan with a 5 year balloon is much safer in today’s environment. 

Thanks, 

Could you send me the portfolio lender's contact info via PM.


Originally posted by @David Fernandez :

5.5% 30 year fixed for a four plex refi (investment property, not primary residence). Rates are up about 0.5% since July/August. Usually, 6 months seasoning is required. This is a conventional loan. 

My portfolio lender offers a 5/25 with a rate based on the 5 year treasury yield + 3% (~6% today).

The difference in rate is not that much, but since this property is on my personal name (rare), I’ll go with the conventional loan. Securing a 30 year fixed rate vs. a loan with a 5 year balloon is much safer in today’s environment. 

I have been unsuccessful finding local direct lenders.  I have been working with mortgage brokers and I am not satisfied.   

Originally posted by @Kerry Baird :

Are you using small, local lenders, @Jason D. , or national portfolio? 

I talked with a guy from Finance America a while ago and I should check back again.

Originally posted by @Jason D. :
@Kerry Baird I used a national lender for that one (finance of America). I haven't found any local lenders doing 30 year fixed commercial loans.

@Russell Brazil  

@Lesley Resnick  

@Jason D.  

@Kerry Baird  

@David Fernandez

@Karen Lindstrom

Liberty Bank Good Neighbor Program in CT offers rate discounts. I rate locked last week at 4.5% 0 points 30 year fixed cash out re-fi. The property needs to be in a CRA area. Google Chris Stokes, Liberty Bank for his contact info or DM me for contact info and website to determine if the property you're looking for is in CRA area. I'm sure other local banks in your specific state has similar programs.

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