Lender not financing multifamily homes

[Pamela Gombe]

Hello

I hope everyone is having a good day!

I am newbie to bigger pockets and excited to get into real estate investment.

My husband and myself currently reside in California but wanted to start investing in real estate in New Orleans.

We had found a multi family(triplex) home in New Orleans, and today the lender Loan Depot that had preapproved us told us that we have to find a new lender because as of last week they are not doing mortgages for multifamily homes on single family homes.

Has anyone experienced this?

It seems fishy but I wanted to check before calling HUD if anyone had heard of this.

[Alvin Sylvain]

Hi, sorry to hear about this.

No, I doubt it's fishy. In this age of Covid, many lenders are tightening their requirements, asking for higher credit scores, higher down payments, etc. They're trying to lower their risk anywhere and everywhere they can. So maybe yours has decided that MF is too risky right now.

I would suggest you follow their advice -- find a new lender, pronto.

Try searching on Bigger-Pockets. I know there are a lot of people who advertise services here, including lending, contracting, sales, etc.

And I can't emphasize this enough -- do it now! Being pre-qualified is really big these days, as good as cash, and you don't want somebody to snatch a good deal out from under you while you're still filling out the paperwork!