Bel Air, MD · Member since 2015 · 16 posts · 7 votes
OK - I'm a newbie here, so pardon any ignorance on terms or how stuff works... I've hit a brick wall trying to refi my current rental to get cash out for my next one (ugh.) So, I'm thinking maybe I need to switch gears and find another 'type' of lender that will take into account my current investment property and provide a loan with terms to help me grow & acquire another property. Is that a 'portfolio' lender? Is this called something else? Anyone have experience/recommendations on this? Thanks!!
Firstly, welcome! Please tell us about the loans you currently have: what number mortgage is this? How many do you have in total, to include your owner occupied? The first few should be "easy" at with conventional lenders, with lower down payment requirements and lower interest rates. Fannie Mae has been expanding these "easy" loans (last I knew it was 6) and easing up on the amount lenders require for reserves.
The next few (up to number 10) are more difficult, with higher deposit needed up front and higher interest rates, plus reserves. Over 10, we go to portfolio lenders.
If you qualify, PenFed does investor loans. Credit unions and small local lenders are most likely to help you grow. You may also want to use the search function and/or set up a key word alert for refinance and HELOC. You might find it easier, with fewer costs up front to get a line of credit on your property.