Investor · Westport, MA · Member since 2016 · 87 posts · 9 votes
Hi BP,
Looking for input on type of lender to work with.
I'm looking to buy multis (2-4) units and single families. I will be using a $350k HELOC for the purchase and rehab. I can then with hold or flip. If hold, I want to finance.
I met with a local bank on the residential side. Initial rates look good. I'm also wondering if I should shop mortgage bank lenders and mortgage brokers.
Any advice on type of lender and specific mortgage banks/brokers to contact.
Properties are in MA.
Thanks,
Mike
For my $0.02, and I may be biased here, I would go with a local mortgage correspondent banker or local lender. Service wise and a little more control of the loan process, I think they will be more valuable to you than a broker.
Good luck.
***Full disclosure-I currently work at a local correspondent banker, but I first started my career with a local bank, then mortgage broker, and now correspondent banking.
A local Community Bank is probably your best bet. They may let you keep property in LLC and they may not have a particular maximum number of properties you are allowed to finance, unlike the regular lender or broker where it's 10.
Once they get to know you, the underwriting on new deals will be rubber stamped.
Mortgage brokers typically have higher fees to be the middleman and more strict of guidelines over Fannie Mae and Freddie Mac.
Conventional lending backed by Fannie Mae and Freddie Mac, typically, have the lowest fees and interest rates.
Local lenders usually have more flexibility if you or the property have difficulty with obtaining the financing..... But you also may pay for it in interest and fees.
This isn't true for all lenders, just what I usually see and hear from experience.