FHA Lenders for small multifamily house hacks
Good afternoon BP Community,
I am working on assembling my "Core Four" and wanted to see if anyone had suggestions for good lenders to work with. I am looking to buy a small multifamily building with an FHA loan, and house hack it. Are there particular banks that are better/easier to work with, or give slightly better rates/terms. Or does the specific loan officer you are working with make the biggest difference? Thanks in advance for the assistance!
Originally posted by @Zack Rosenbaum:
Good afternoon BP Community,
I am working on assembling my "Core Four" and wanted to see if anyone had suggestions for good lenders to work with. I am looking to buy a small multifamily building with an FHA loan, and house hack it. Are there particular banks that are better/easier to work with, or give slightly better rates/terms. Or does the specific loan officer you are working with make the biggest difference? Thanks in advance for the assistance!
Independent mortgage brokers have a general rate advantage most of the time, and the strongest rate advantage on FHA/VA loans. Mostly because retail banks are allowed to set profit margins by loan type, but wholesale brokers aren't.
So by the time a broker prices to be competitive for "jumbo" loans (where retail banks typically have the thinnest profit margins, to win the business of the 800 FICO $2.5m price 30% down people they can later cross sell other financial services to), that same thin margin by law must also be the margin on FHA/VA, where retail banks by contrast generally have the fattest profit margins (a factor of 3 is not unheard of).
Being a veteran and seeing that giant fat profit margin on VA for my fellow veterans, and figuring all this out, was part of why I made the switch. But you can attribute the killer rate to the broker's generosity and kindness if you wish. :P
