Investor · San Diego, CA · Member since 2014 · 36 posts · 8 votes
Hello
I have a pre-approval with a conventional mortgage lender for purchase of a property that is up to 4 units only. I am looking to invest in the Pittsburgh market. I am coming across some deals that have 5-8 units that have better cash flow and appealing. Any recommendations on lenders who can finance these properties? Also, how much downpayment will be required for these loans and what does a typical term and loan processing timeline look like?
Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
8y
there are you options @Anand S. for best results and Lower rates you are better off working with local bank . If someone local can refer you that would be better as it is a relationship business. Allow 60 days but depending on the bank.
There is no one answer for this. But off the shelf you are like to be quoted
Rental Property Investor · Phoenixville, PA · Member since 2015 · 44 posts · 44 votes
8y
Local bank (not the Wells Fargo or TD, more the community banks & credit unions). They may expect a deposit account to be setup, for the building and you personally. Deposit accounts are important to their numbers, and you may be able to use that as leverage to negotiate a slightly better rate/term. Some will allow a % of rehab to be rolled in, with an I/O component they'll just need to verify via an appraised value now and projected value post value add, if any. 20-25 yr amort, usually 5-yr term. It's all negotiable, don't be afraid to ask. They focus on long term relationships.