Are all 30 yr fixed investment loans, 1% higher than residential loans? Is there a way to get a good mortgage deal on an rental property? Are there ways to shop or certain lenders to contact?
where can I get a good rate so I will cashflow?
experienced landlords, pls help!
What is your FICO? That's important. Historically investment loans ran 1 point higher than residential. Closed a triplex and they flagged it on the day of closing and added 2 points to the already high point loan.
Got 5.785 October before last at a large bank as an investment loan but have high FICO, no inquiries on my credit for a year and little debt. If an investor applies for a loan and your taxes look bad (good to you, bad to banks) you must qualify for a loc doc or papersaver type loan. Otherwise, you use brokers. Get a good one that knows his or her stuff.
Remember also that your FICO score is unaffected by your shopping rates within a 2 week period. You get 4-5 inquiries on your credit report and they think you're about to file for bankruptcy.
Also, banks take off 25% of your rental income reducing your net. If you have losses of any kind...they're not impressed. That's why you need a good loan officer.
We're back to the good ole days of lending guidelines.