Rental Property Investor · Naples, FL · Member since 2014 · 8 posts · 0 votes
Looking for recommendations of online lenders who can do more than 4 mortgages. I researched BP and mostly everyone was recommending local banks and credit unions but since I have properties in multiple states, thought it will be easier to have some place where I can contact them online. Please let me know the pros and cons of online lenders you have used. I am looking for about $100,000-$150,000 in mortgage and can put 25% money for down payment and also can pay closing costs. Thanks in advance.
Investor · Dallas, TX · Member since 2014 · 2k+ posts · 1k+ votes
11y
Unfortunately, most of the online lenders are larger banks &/or high volume originators. The restrictions they place are their own underwriting guidelines, usually based upon the fact they will be selling your loans to get them off their books, so they can originate more loans. It's the game lenders play, due to lending limits.
That's the reason people are recommending small, local lenders. Those guys are more likely to keep your loan in house and service it themselves.
Also, there is no legal restriction on a lender collateralizing a property in another state, so my advice remains the same. Find a local lender you can build a relationship with.
Investor · Pflugerville, TX · Member since 2014 · 152 posts · 93 votes
11y
You can also try working with a mortgage broker that is local to you. Mortgage brokers work with dozens of lenders (local and nationwide) and there are usually a few that can get you what you need. We have been able to get up to nine mortgages this way but each lender has their own rules. For instance each individual lender does not want to have more than two mortgages with you to help limit their risk exposure but at least you could get mortgage #5 & #6 before finding another. The broker generally can get you lower closing costs and better rates as well so it is a win-win. If your mortgage broker can not get you any more mortgages, look for another one until you find one that has the right lender pool.