Investor · Imperial Beach, CA · Member since 2017 · 43 posts · 5 votes
Greetings All,
I have a 4 unit building under contract and have called a dozen or so banks all of which are only offering adjustable rate mortgages. I will not be occupying the property. I was under the impression anything under 4 units could still qualify for residential loans. Anyone else have this issue or can recommend a bank in Wisconsin that does fixed rate for non owner occupied investment properties? Thanks in advance.
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
7y
Have you asked why they don't/won't offer conventional terms? You'll very quickly know what the issue is if you just ask them.
I had a SFR a few years ago that was quoted conventional and then ended up as a 'portfolio/commercial' loan but honoring the original conventional quote. The issue was the underlying zoning had changed to commercial over the years and the concern was that the property couldn't be rebuilt if destroyed....I only use that as an example to say that asking what the issue is the best way to get your answer.
Investor · Imperial Beach, CA · Member since 2017 · 43 posts · 5 votes
7y
@Dennis Haefner that is exactly what I had been running into but received a bunch of great recommendations from this post and talked to some great people that pointed me in the right direction. Unfortunately (or fortunately depending on how you look at it). I was also advised about the seller contribution max for Fannie Mae investment properties being 2% of purchase price, which our contract exceeds. so it looks like we will end up going portfolio commercial anyways and possibly look to refinance in the near future.
Lender · Chicago, IL · Member since 2017 · 438 posts · 193 votes
7y
To echo the comments here, if in your personal name, good credit, and a healthy down payment, you should have fixed options rather than simply portfolio or ARM products. Any questions Adam, let me know!
Insurance Agent · Des Moines, IA · Member since 2014 · 26 posts · 6 votes
7y
There are lenders who will provide fixed rate, 30 yrs amortization on 1-4 unit residential investment properties. If you’d like to know more feel free to contact me