Small Multifamily Conventional Loan Rates?

15 Replies

I got pre-approved from a lender recommended to me in the Ohio market. But feel the terms are high especially with the Fed lowering their rates recently.  It is a fixed 30 year conventional loan @ 5.25% for a 2-4 unit multifamily property requiring 25% down (not my first rental property and also not owner occupied).  Are these terms high or average?  Anyone have any lenders they work with in the Ohio marketplace?

 

Unfortunately i'm not too familiar with the Ohio market but for North Carolina, yes that would be high. For that type of property we are seeing around 4.7%-4.9% with 25% down, and that was a couple months ago, its probably lower now. Maybe shop around more, are you going through your personal bank in WA, a bank local to the property in Ohio, or are you using a mortgage broker? Depending on who you work with you may get multiple answers.

Hope that helps, good luck.

@Aston Levarek I was pre-approved with a local Ohio bank.  Unfortunately the lender I like working with here in Washington is not licensed in Ohio. I will do some more research and get a few more quotes.  Thanks!

@Devin Chong You mentioned the interest rates but did not mention if that rate quote was a par rate or if the lender was charging points. For comparison purposes I always tell customers to make sure they are requesting the 0 point rate.  That way you can be sure you are comparing apples to apples.  

@Devin Chong I would reach out to multiple lenders with a 30 day period (this way it only counts as one hard inquiry) and get different quotes. I give all of my clients about 15 local mortgage lender referrals. These people work for banks and mortgage brokerages ranging from small local businesses all the way to global institutions.

@Devin Chong There are 2 excellent lenders you may want to talk to before you pull the trigger on this. Prime Lending (Marc Kade) specifically and 614Mortgage (Andy Danec). Marc may be an especially great contact for you. He’s a fellow RE investor and can help you map out your entire portfolio and recommend other avenues for cash.

You can find these guys and other top lenders in the area with a quick Google search. If you struggle to find Marc or Andy’s contact info however, shoot me a message and I’ll hook you up.

Originally posted by @Tom Matousek :

@Ashton Levarek

Ashton, which banks were you inquiring with? Currently shopping around NC as well.

@Tom Matousek - To be honest Tom, I'm not inquiring into any banks.  Im a huge fan of leveraging other peoples skill and expertise to get the most out of my time and efforts. So, that being said, we use a mortgage broker on  most of our deals. 

Hope that helps. 

@Devin Chong It of course varies per lender and borrower. I've seen a lot of people secure competitive rates with Aaron Chapman at Security Natational Mortgage Company. He's licensed nationally. He's also got great investment experience so there's value beyond his rates in having him on your team!