Struggles in Refinancing in Hillsboro OR

8 Replies

With such a great job demand and soaring property prices in Hillsboro OR, I am surprised I have spent months and months together to look for a bank or lender who can re-fi our 5 plex and duplex. Both have great cash flow and very less vacancy. 

I am wondering if anyone else has experienced this hardship of finding a lender. I either find someone who does only and only residential or others who want to work with only more than a million. 

Hi Pragya,  I wasted almost a year with an online lender.  It's took forever and I'm frustrated by closing costs.  I have single family rentals and have not been able to find a lender that will do a portfolio loan.  Refi-ing each individual property will kill you with closing costs.  

The advice I received and will be trying next is to do HELOC's with a local credit union. The pluses for me are no/little closing costs and no immediate interest payments (I don't have my next purchases lined up). The cons are higher interest rates and lower LTV.

I am wondering if anyone else has experienced this hardship of finding a lender.

Are you using a resi or comm mort broker?  >4 units is usually different lenders and that's small for a comm mort broker.

Most lenders for 5+ unit properties will have higher minimum loan amount than if it were a SFR or a 2-4 unit property. I would also recommend using a lender that is a commercial lender or does investment properties only or as a specialty. With rates being so low and so many people refinancing at this time your typical mortgage lender is likely overwhelmed and does not have time to take on a loan that is out of their typical loan scenario or will be picky on the loans they take.

Originally posted by @Steve Morris :

I am wondering if anyone else has experienced this hardship of finding a lender.

Are you using a resi or comm mort broker?  >4 units is usually different lenders and that's small for a comm mort broker.

As of now, we could either combine both the properties and get a blanket loan or have them separate. Which ever is possible by lenders. 

There are residential lenders who are okay with doing a re-fi on the 2-unit but there is a scarcity for the 5-plex ones. 

I am just trying my luck with local banks for the commercial. 

 

I have not found ANY lender willing to do a HELOC on a rental property that one does not reside in. Big banks like Wells Fargo did commercial loans under 1M last I checked. You may want to stick with the big guys.

Hi @Pragya Singh Long time no talk :) Hope you & your husband are doing well.

Did you check with First Tech? Last time I talked to them they had re-fi programs for rentals, but LTV is maxed at 60 I guess?

Yep, commercial lending is a whole new ball game. I've personally used a few local lenders for past transactions. For me I prefer the 15 year fully fixed options. Columbia bank, and St Helens CU were the only 2 that I've seen offer that, I'm sure there are more, but it's just very hard to find. For residential properties I've got a few other contacts that are wholesale brokers offering extremely competitive rates. Feel free to reach out. Nick Atwood - Atwood Realty.