For out of State Investing, should the lender be local to me or to the property?

[Shelby McKean]

I live in Tennessee and I have an investment opportunity in Philadelphia for a single family long-term rental.  Where should I ‘locate’ my lender?  

[Melissa Justice]

@Shelby McKean,

Great question! When you're investing out of state, the location of your lender doesn't necessarily have to match where you live — or where the property is — but there are a few things to consider:

Best Practice: Use a Lender Familiar with the Property’s Market
Lenders who regularly fund deals in Philadelphia will understand local comps, property taxes, title norms, and appraisal standards better than someone from out of state.

This can help speed up underwriting, avoid surprises, and make closing smoother — especially if it's your first deal in that market.

Your Lender Options:
Local Philadelphia Lenders or Credit Union- Can offer competitive rates and may be more flexible with unique properties or older housing stock common in Philly.

National Investment-Friendly Lenders- If you're doing a long-term rental, look at lenders like BluPrint lending that are investor friendly and lend in all states except NY.

Turnkey Providers or Partners- If you’re buying through a group like ours at Rent to Retirement, they can connect you with pre-vetted lenders who already work in that market and know the local conditions inside and out.

Quick Tip:
If this is a conventional loan (Fannie/Freddie), you can use almost any lender licensed in Pennsylvania. Just make sure they have experience working with investors. Many residential loan officers don’t fully understand rental income underwriting.

Bottom line: Choose a lender who’s either local to the market or very experienced with out-of-state investor deals in that area. Let me know if you want more lender recommendations that match your investment strategy!

Wishing you much success,

Melissa Justice

Investment Strategist