Financing in East Texas

10 Replies

Hi BiggerPockets community,

My husband and I live in the greater Dallas area, but are eager to start investing in rental properties in Tyler (we have roots in East Texas). I've been calling regional lenders all morning to compare rates and terms, and I've been surprised to find that a 15-year fixed mortgage is the longest term we can find. 

We had some good leads, but none of the properties work without a 30-year fixed-rate mortgage. I'm hesitant to go to larger banks, because a) I know they don't tend to be as investor-friendly, and b) we're both self-employed, which has tended to scare larger banks in the past. 

Has anyone else encountered this dilemma before? Are there any East Texas investors who have obtained 30-year-fixed conventional loans? Thanks in advance!

@Marta Frey  Guidelines are same for all the lenders its just overlays which may have impacted on your loan scenario. 30 year fix is common product in conventional lending, I don't see any reason why you are not getting interest rate.   You can call any nationwide lender which may have better option for you.   

Originally posted by @Marta Frey :

Hi BiggerPockets community,

My husband and I live in the greater Dallas area, but are eager to start investing in rental properties in Tyler (we have roots in East Texas). I've been calling regional lenders all morning to compare rates and terms, and I've been surprised to find that a 15-year fixed mortgage is the longest term we can find. 

We had some good leads, but none of the properties work without a 30-year fixed-rate mortgage. I'm hesitant to go to larger banks, because a) I know they don't tend to be as investor-friendly, and b) we're both self-employed, which has tended to scare larger banks in the past. 

Has anyone else encountered this dilemma before? Are there any East Texas investors who have obtained 30-year-fixed conventional loans? Thanks in advance!

 Are you trying to get a commercial?  or personal non owner occupied loan?  Commercial loans will typically have much shorter terms.

@Marta Frey I have had Texas National Bank out of Jacksonville Texas do a 30 year as well as a 20 year variable. I use a local branch in Longview. Good People there

Thanks for the advice, everyone! To clarify, I'm seeking a personal non-owner-occupied loan, not a commercial. Tom, I actually spoke to a loan officer at Texas National Tyler branch and was told a 20-year ARM is the longest they offer. I might try Jacksonville, or maybe it's just a matter of building a relationship. Regardless, I appreciate your help.

Try Flagstar bank https://www.flagstar.com/. I financed three houses in Longview with them last year. Good luck!

Originally posted by @Marta Frey :

Thanks for the advice, everyone! To clarify, I'm seeking a personal non-owner-occupied loan, not a commercial. Tom, I actually spoke to a loan officer at Texas National Tyler branch and was told a 20-year ARM is the longest they offer. I might try Jacksonville, or maybe it's just a matter of building a relationship. Regardless, I appreciate your help.

 If you want, send me a note, I can give you the name of the mortgage broker I use.  She works the Dallas area, and she has gotten us multiple 30 year non owner occupied notes matching your exact scenario.  I know at least a couple of the lenders she uses have a national or at least regional scope.   I think they would do something in Tyler.

@Marta Frey Local banks are probably not the best place to start if you are looking for a conforming (Fannie Mae) loan. Unless you have 10+ conforming loans already, there's no reason you shouldn't be able to get a 30 year fixed rate loan at 70-75% LTV.

As @Bart H. suggested, I would start with a mortgage broker who works with investors. I've used one that operates out of New York but has funded loans for me in multiple states (none of them NY).

Originally posted by @Marta Frey :

Hi BiggerPockets community,

My husband and I live in the greater Dallas area, but are eager to start investing in rental properties in Tyler (we have roots in East Texas). I've been calling regional lenders all morning to compare rates and terms, and I've been surprised to find that a 15-year fixed mortgage is the longest term we can find. 

We had some good leads, but none of the properties work without a 30-year fixed-rate mortgage. I'm hesitant to go to larger banks, because a) I know they don't tend to be as investor-friendly, and b) we're both self-employed, which has tended to scare larger banks in the past. 

Has anyone else encountered this dilemma before? Are there any East Texas investors who have obtained 30-year-fixed conventional loans? Thanks in advance!

If you are still looking, contact Holly Ethredge at Citizens State Bank in lindale.  She is the Mortgage person there and covers all of East Texas and she is also a real estate investor herself. She is definitely investor friendly.  If you have a problem getting in touch with her, let me know and I can help. 

@Marta Frey Marta, our family has used Southside bank in Tyler to build commercial properties throughout East Texas, some notes are 20 yr, some 25-30yr notes. We are also self employed.

@Marta Frey   If you and your husband can qualify for conventional loans, you need a Fannie or Freddie loan.  Regular mortgage person can help with that.  I'm happy to help you with that.  If you can't qualify, there are 30 year investor loans available, just not with the banks.  I'm happy to walk you through that as well.   Good luck.  

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