Can't find any unfrozen lenders for 2 property deal.

Private Lending & Conventional Mortgage Advice

Can't find any unfrozen lenders for 2 property deal.

Real Estate Investor · OH · Member since 2008 · 14 posts · 1 vote

Tried a local direct money lender, who ran my perfect credit report, and now they won't return my calls.

also tried lendingone.com, and they are currently frozen. This is my first investment deal. Anyone know of any lenders that aren't frozen? Or any other suggestions?

0 Reply

14 views

Most Popular Reply

Lola Omishore

Investor · Brooklyn, NY · Member since 2019 · 37 posts · 24 votes

Your best bet would be to use a mortgage broker that has access to a portfolio of hundreds of lenders and has an existing relationship with said lenders. Yes, it will cost you a brokers fee, but it saves A LOT of time and headache, trying to reach hordes of lenders that aren’t being responsive while you have a time sensitive deal on the line.

The mortgage broker would have insight on which lenders are still operating during this time, might be new provisions to qualify for a loan, but there are definitely lenders still in operation.

What kind of loan are you looking into? A conventional loan or portfolio loan?

-Lola

2 Reply

See this reply in the discussion

13 Replies

Jump to latestLatest

Sort by

Lola Omishore
Investor · Brooklyn, NY · Member since 2019 · 37 posts · 24 votes
6y
Your best bet would be to use a mortgage broker that has access to a portfolio of hundreds of lenders and has an existing relationship with said lenders. Yes, it will cost you a brokers fee, but it saves A LOT of time and headache, trying to reach hordes of lenders that aren’t being responsive while you have a time sensitive deal on the line.
The mortgage broker would have insight on which lenders are still operating during this time, might be new provisions to qualify for a loan, but there are definitely lenders still in operation.
What kind of loan are you looking into? A conventional loan or portfolio loan?

-Lola
2 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
lima one is still doing fix and flip
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
reality check though.. while credit is nice its not the determining factor in a HML..

% cash into the deal is number 1 and number two is experience over the last 24 months followed by fico.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Kevin M Finley
Developer · Kenosha, WI · Member since 2017 · 141 posts · 91 votes
6y
I called about a dozen nationwide Rental Property refi lenders a few weeks back and all were frozen indefinitely. I'm not sure this is changing any time soon unfortunately
0 Reply
Dane Fitch
Investor · Gresham, OR · Member since 2015 · 39 posts · 21 votes
6y
Hey @Brad Stafford. I've heard Civic is one of the only non QM lenders with a rental product. It's obviously not ideal. 1.1 dscr and likely around 7% with a 25-30% down payment. One thing Lendinghome has is a 24 month no prepayment penalty which can give you a lot of options including renting through the crisis. The local lenders without Funds have been hit the hardest as they have no place to sell their loans they originate. From an investor perspective, I'd want an incredible deal this month and next month. Something that could take a 20% hit in home prices over the next year. No one has a playbook here, so it's anyone's guess as to how long it takes to get on the other side. Good luck
1 Reply
Brad Stafford
OP
Real Estate Investor · OH · Member since 2008 · 14 posts · 1 vote
6y
Thanks for the replies, everyone.

I have a 720-730 credit rating now, and I also have 20% down. The only thing I don't have is experience. I was hoping to get a commercial loan as the properties are being sold as a single deal rather than two mortgages, is this a mistake?

The deal is for 2 duplexes (4 units) for approximately $79,000 before fees and taxes. They are all rented already with on time tenants. They were all renovated within the past two years with the exception of 1 unit. I've been in 2/4 units to confirm this. Property in this area has never risen in value, with the exception of SFHs in particular neighborhoods, so I doubt property value to go down much. The problem is a lot of population is employed by Honda, and they look to be hurting quite a bit for the foreseeable future.

A representative of, Direct Lending Partners, sent me a PM on here, but a quick search sort of seems like that have a bad history with a lot of people from these forums. I've talked to my bank, who does no investment banking, so it seems like it might be time to switch banks in general. I need this deal to be completed in less than a month, hopefully.

1 Reply
Eric L.
Rental Property Investor · Royersford, PA · Member since 2018 · 25 posts · 19 votes
6y
@Brad Stafford you may need to put 25% down on each duplex across 2 conventional loans, so I do not blame you for seeking out a commercial loan. Lenders have been raising their minimum requirements and I suspect a 730 credit score may not make the cut with most lenders today. I would reach out to local real estate agents asking for recommendations on lenders that are still closing and contact all local credit unions.
1 Reply
Dane Fitch
Investor · Gresham, OR · Member since 2015 · 39 posts · 21 votes
6y
@Brad Stafford is it 79K for both or 79K a piece. if it's the former, you may even have a hard time getting a loan on both as most lenders want a loan to be at least 79K. I think the only likely option is to do the loans separately rather than together with a commercial loan.
0 Reply
Brad Stafford
OP
Real Estate Investor · OH · Member since 2008 · 14 posts · 1 vote
6y
Its 79,000, for both properties, not 79,000 for each.

I've tried several places, I cant get anyone to give me a call back. I have nearly 25% down now, it seems like the only people that have approached me seem to be almost legit confirmed scammer companies that string you along and never close.

I think my window of opportunity is closing on this deal unfortunately.
0 Reply
Lola Omishore
Investor · Brooklyn, NY · Member since 2019 · 37 posts · 24 votes
6y
@Brad Stafford Are you in contract on the duplexes already? Do you have a closing date?
0 Reply
Brad Stafford
OP
Real Estate Investor · OH · Member since 2008 · 14 posts · 1 vote
6y
@Lola Omishore, No. I couldn't get any lenders to talk to me except to inform me that they were frozen.
0 Reply
Lola Omishore
Investor · Brooklyn, NY · Member since 2019 · 37 posts · 24 votes
6y
It’s very likely that the property seller hasn’t had other offers made yet as investors are not touring properties as they normally would due to social distance restrictions.

Is the property listing still active on MLS?
The same issue that you’re facing with securing financing, everyone is currently dealing with. Unless you know of offers already made on the properties, then you should be able to revisit this in 30 days as lenders become less gun shy.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.