5% zero points can't close in 30 days versus 5.1% with 1/2 pt clo

[Jennifer MacDonald]

Looking for advice on which lender is offering the better deal.  

Purchasing a HUD Home. One lender offering 5% with zero points but states they can't close it in 30 days.

Another lender offers 5.1% with 1/2 point but can close it in 30 days.  

HUD contract says a 45 day closing which puts us at March 15th.

Which is the better financing deal? This is a SFH, I will be renting it and holding on to it for some time.

[Andrew Postell]

@Jennifer MacDonald I would be VERY wary of using a lender that cannot hit timelines.  That is a big no no.  It leads to other issues if a lender admits they can't close in a timely fashion.  I would guess that it is a large bank.  If so, that's two strikes against that lender.  Most investors use smaller to mid-sized banks.  I would also recommend showing the lower lender's numbers to the higher lender.  Often times lenders will match rates and costs if you have it in writing.  The document to get is either a "Closing Cost Worksheet" or a "Loan Disclosure".  That way it is official and you can show the bank the other banks figures.  Maybe they will match and the problem will be solved.  Let me know if you have any other questions.  Thanks!