local lenders or national?

6 Replies

I'm in a good position, house rehabbed and rented for a BRRR re-fi, and now have 2 more properties under contract in a 100,000+ population in Kentucky. The challenge has been finding a local lender in my investment market to work with, as I am an out of state investor trying to get established in this market. I have my network in my home state and town, but their local institutions cannot lend on out of state properties.

What options have worked best for you in the past?  National lenders?  Local lenders (local to where the properties are)?  I'm making the assumption that national lenders who do this type of re-fi regularly will be much easier to work with, as this is normal practice for them?

Thanks for your input!


@Warren Smith no question, local lenders. I have so many bad stories with national lenders, right now Chase screwing up a deal. They confused loan amount with contract price, the appraisal is based on the loan amount and they called it okay, even though it's below contract price. Took them 3 days to understand the mistake and now we have day 6 of no response and I have no way of escalating it, because they are remote and they guy just does not care that much. To him it's just a case number, never met my clients. It sounds to bad to be true!

@Warren Smith Local is preferred if you can find the right one. Local lenders usually have less restrictions and can be more forgiving on guidelines. There should be less restrictions for commercial loans instead of residential. I'm closing on a cash out refi now with an out-of-state lender and the only requirement they have is that I open a bank account with them. Call as many local lenders as you can to find the right one. Best of luck! 


I personally invest in two states - Ohio and Texas - and I use local credit unions where the properties are located. 

I've never used a national lender but have heard similar horror stories with national lenders like @Marcus Auerbach mentioned. 

Building relationships with local folks will always pay the best dividends. 

Best of luck!

@John Warren The cash out re-fi is a 2/1 single family.  We have a 3/1 single family under contract, a duplex and a mixed use commercial with a 3/1 upstairs on the same property also under contract. 

I'll keep trying the local lenders. Getting started is the most challenging part, but once a portfolio is up and going should be much easier.  Thanks for the input @Jon Kelly and @Marcus Auerbach