Lenders for Multifamily conventional loans during Covid?

Question

Hi all,

I was working on a pre-approval for a conventional loan on an investment property today with Chase. After filling out the application and talking to a loan officer, she told me they're not making loans on multi-family units or condos right now. Has anyone had similar issues with getting a conventional loan for a multi-family investment property recently? I'm curious if many other banks are putting similar restrictions in place, and wondering when they'll lift them

- Dave

Clarence Johnson · Answer

@Igor Nastaskin Chase is the problem here...everyone is more conservative, they are of the worst...send a DM

David Lyons · Answer

@Leeron Regev that makes sense. I've actually gotten a hold of a few local lenders & a commercial broker who are still giving investment loans for MFR. Good to know that the larger banks are going to have more restrictions in times like these.

Leeron Regev · Answer

Hi @David Lyons Chase is one of the largest institutional banks. From my experience, during violate or unusual economic times, the institutional firms tend to shy away from doing deal - until there is more clarity in the market.

By default, banks are risk averse. Without knowing how deals will look in the next few months, taking on any deal poses risk, so banks shy away from them during times like these.

That being said, there are private lenders and funds that may still be willing to lend during this time.  Message me for more info...maybe we can brainstorm!

David Lyons · Answer

Thanks @Lola Omishore for the advice on the local banks!

Igor Nastaskin · Answer

Anyone can recommend lender who still does jumbo loans on duplex/fourplex in Los Angeles area? Thx

Lola Omishore · Answer

There are a ton of lenders still doing conventional loans on MFR. I don't know where you live, but I'd steer clear of the big banks and go to a smaller local bank/credit union in the area that you're looking to purchase a multi-family.

Every lender that I've spoken to is still doing conventional lending on multi-families.

If you can specify where you're looking to purchase, it would help to offer you lenders that I know of personally.

Lenders for Multifamily conventional loans during Covid?

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