Investor · Nashville, TN · Member since 2015 · 429 posts · 143 votes
Hello all,
I'm in the (dreadfully slow) process of getting approved for an FHA loan through a conventional lender, and am wondering if it would be better, or maybe easier/quicker to just try and go through a portfolio lender?
How different is the process? I know they won't just accept every proposal that comes in, but are they noticeably more stringent than a conventional lender?
It may or may not be helpful to know, but I'm in Nashville, TN, in case anyone has had a positive experience with a portfolio lender in this area.
Chicago, IL · Member since 2015 · 298 posts · 261 votes
11y
Two months just to get preapproved is unacceptable to me. I would start the process with another bank.
FHA is already a longer process than conventional due to the extra things the govt needs to insure the loan. If the bank is dragging its feet right now i would expect it to take 4-5 months to close after finding a property. Start over now before you get too far into the process with them.
Investor · Nashville, TN · Member since 2015 · 429 posts · 143 votes
11y
I wish I knew. I was easily approved with another lender back in April, but the deal fell through, and I wanted a clean slate with a different bank. It's going on two months, and I haven't even been pre-approved. I'm looking to move out of my apt in December. I know there's some time, but I'd hate to be rushing to find a property at the last minute.
I'm thinking it's just the particular lender, but I was just curious about some other options.
Chicago, IL · Member since 2015 · 298 posts · 261 votes
11y
Two months just to get preapproved is unacceptable to me. I would start the process with another bank.
FHA is already a longer process than conventional due to the extra things the govt needs to insure the loan. If the bank is dragging its feet right now i would expect it to take 4-5 months to close after finding a property. Start over now before you get too far into the process with them.
Real Estate Agent · Las Vegas, NV · Member since 2015 · 97 posts · 28 votes
11y
Realistically you can get pre-approved within 42-78 hours depending how backed up underwriters are and how quickly you get them all the documents they need. If it takes more than 5 days for a full pre-approval I would move on to a new lender.
Rental Property Investor · Lebanon, TN · Member since 2011 · 29 posts · 17 votes
11y
Call Chris Haynes at Peoples Home Equity in Mt Juliet
(615) 288-4452 he will approve or not in a day or two. Your FHA loan will be a much lower interest rate than a portfolio lender. If you need a portfolio guy in Nashville call Phillip Vance at First Freedom Bank 615-470-1345 but it will be 1%-1.5% higher interest rate. Good Luck!
Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
11y
@Mark Douglas Unless there is something on your credit or income, you should be able to get an pre-approval right away. I turn around my pre-approvals within 12 hrs.
Call Chris Haynes at Peoples Home Equity in Mt Juliet
(615) 288-4452 he will approve or not in a day or two. Your FHA loan will be a much lower interest rate than a portfolio lender. If you need a portfolio guy in Nashville call Phillip Vance at First Freedom Bank 615-470-1345 but it will be 1%-1.5% higher interest rate. Good Luck!
Call Chris Haynes at Peoples Home Equity in Mt Juliet
(615) 288-4452 he will approve or not in a day or two. Your FHA loan will be a much lower interest rate than a portfolio lender. If you need a portfolio guy in Nashville call Phillip Vance at First Freedom Bank 615-470-1345 but it will be 1%-1.5% higher interest rate. Good Luck!
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
11y
Pre approval shouldn't take any time at all. I started the process once with a bank, they took more than 3 days to pre approve me and so I went to a different bank because 3 days is too long for a pre approval.
FHA loans are more paper work and do take longer but not THAT much longer.
Your interest rate on an FHA will be lower, however; if you don't put down 20% your mortgage insurance is going to be quite high!
A good portfolio lender that I have worked with was Cedar Stone bank here in the greater Nashville area. If you're interested give them a call.