Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 11 years ago on . Most recent reply

User Stats

1,309
Posts
528
Votes
Mark S.
  • Rental Property Investor
  • Kentucky
528
Votes |
1,309
Posts

Mortgage for Rental

Mark S.
  • Rental Property Investor
  • Kentucky
Posted
I've been talking to several banks about loan programs for rental property. Most require 15 to 25% down, which I expected. The thing I didn't expect, however, is that it seems that virtually all of them are looking at either a 3 or 5 year ARM, many with no cap after the fixed rate period is up. Anyone getting fixed mortgages on rentals right now. Maybe I'm just talking to the wrong people. Most of these banks are local or regional, where I expected to get an even better deal than from, say, a national bank. Thoughts?
  • Mark S.
  • Most Popular Reply

    User Stats

    604
    Posts
    327
    Votes
    Chris Adams
    • Contractor
    • Valparaiso , IN
    327
    Votes |
    604
    Posts
    Chris Adams
    • Contractor
    • Valparaiso , IN
    Replied

    How many homes do you have currently? I believe the first 4 investment properties can be done thru conventional fixed rate mtg's.

    I am putting together a deal with a small local bank right now, 5 yr ARM w 2/6 cap so i know its out there. Stay away from a no cap ARM. I called at least 20 banks and found 2 that had terms I was interested in.

    Another thing I look for is banks that do portfolio loans. This means they don't sell the loans on the secondary market. Its my opinion this creates a better relationship between myself and the bank, I can get more flexible terms, and there underwriting guidelines are less stringent.

    Loading replies...