mortgage lenders for investment properties? recommendations?

Question

I see hard money lenders category on BP but no list of mortgage companies that specialize or work well with investors.

here is what I have purchase contract for/looking to finance: 68k purchase price on a fully occupied duplex, I can put 20%-25% down giving me a 51-54k amount to mortgage. This will keep me above the 50k minimum requirement to get a 30yr fixed mortgage. (im in it for cashflow, not principle paydown).

The bank I do commercial loans with is very small, doesnt do much with investment properties regarding mortgages.

I only have 1 other SFR mortgage.

Any "must check with" mortgage companies out there you recommend or have had a good experience with getting a 30yr fixed low interest loan on an investment property?

Account Closed · Answer

I think it would be a great idea to compose a list of national and maybe localized mortgage lenders (not just hard money lenders) listed on BP that like to do mortgages with investors such as offering low fixed interest rates eventhough its not owner occupied, 25% or less down, 10 mortgages allowed since some banks have lower limits on how many, etc..

would be a handy list?  :)  @Joshua Dorkin

Account Closed · Answer

Isaac, check with the smaller banks in your area.  They are much easier to work with and generally keep the loans "in-house".  They also have a lot less set of rules to follow than the bigger, "Chain" banks.  Some will also loan a higher percentage of the appraised value than others.  Once you find a good bank, stick with them and run all the deals through them.  Good luck!

Account Closed · Answer

@Jerry Padilla I liked the blog post, couple questions

- conventional, long term, financing for investment properties down to $10k? can you elaborate, that would be the first Ive heard that and can it be fixed rate? How much do the rates differ from $50k+ type conventional loans in your past experience?

from your blog, can you elaborate on this, not sure I understand;

4. Loans for investment properties are not eligible if the transaction  includes non-arm’s length and/or at-interest characteristics

- Regarding cash reserves & down payment, can an existing LOC against a different property you own outright be used to show you have sufficient cash reserves and is it ok if you draw from your LOC for down payment funds?

Account Closed · Answer

@Michael Dowd my bank is a smaller one (only one location).

I actually just got off the phone with them, they told me they will get the 30 yr mortgage done regardless even if they have to keep it in house to allow me to close without delay then they will continue on their search to take it to the secondary market.

Gotta love small banks!

Jerry Padilla · Answer

Account Closed Conventional loans with terms of 15-30 year and loan amounts start at $10,000. Rates can be fixed and rates don't typically change for a loan amount but more so on credit score and LTV.  Property type will also have an impact on rates as well.

4. Loans for investment properties are not eligible if the transaction includes non-arm’s length and/or at-interest characteristics - Both seller and buyer can't a relationship or business affiliation.

LOC would only be allowed for down payment  and reserves would need to be own funds such as checking, savings, IRA, and 401K etc.  If utilizing an IRA or 401k for reserves then terms and conditions for withdrawal will be required.

Jerry Padilla · Answer

Account Closed  that is a great idea.

Here is a blog entry I wrote on conventional financing;

http://www.biggerpockets.com/blogs/5110/blog_posts...

Neil Aggarwal · Answer

There should be companies that specialize in loans to investors.  There are probably also private money sources in your area.

I think you are going to have to talk to everyone around you and network until you find what you are looking for. It may be hard to find but nothing worthwhile is ever easy.