Lenders in Cleveland

[David Tsariov]

Hi everyone,

Does anyone have any suggestions for experienced lenders in Cleveland, that work with foreign investors?

Also, wondering if it makes sense to look for companies offering loans under 75K of property equity, or is it typically better to consider private lenders?

Any insights will be greatly appreciated. Thanks!

[Kevin Romines]

The problem with small loan amounts, I.E. $100,000 or less is that most of those loans are residential in nature and therefore must comply with RESPA. RESPA has a points and fees test for both owner occupied and non-owner occupied. For Owner Occupied, the test is a max. of 3% of the loan amount for items such as the origination, discount points and processing fees. 

On a non-owner occupied, the test is 5% of the loan amount for items such as the origination, discount points and processing fees.

For this reason is why most lenders have minimum loan amounts of $100,000 to $150,000. A credit union is regulated differently than other entities, not that they don't have to comply with RESPA, they do, however they have options at that low loan amount that most the rest of the lending world doesn't have. 

I hope this helps.