Loan Guys......Never Ever Again! Need another finance partner

Developer · Oakland, CA · Member since 2022 · 3 posts · 1 vote

Hey Folks,

Just finished closing on 2 properties with Loan Guys, and I already feel like I should shower!

They refused to provide disclosure forms after multiple requests,
Would not tell me the PITI on the loan,
Didn't disclose lender fees until closing and literally snuck in a junk fee on the morning of closing.

Not to mention they increased the rates on one of the loans the morning of closing, even though the rates had been locked for over a month. I received an 8.375% loan with a 730 credit score and 2 deals that had an income ratio of 2.7.

Loan Guys might be fine for some investors, but I had a very rough experience and won't be using them again for financing.

If anyone has a finance partner that is transparent with the numbers, please reach out.

0 Reply

289 views

Most Popular Reply

Stuart UdisPro Member

Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes

18h

Based on what you shared you are bankable and the real estate was not an issue, so the glaring question is why did you choose to use this lender? Doesn't sound like this was a property where you were under any pressure if you received terms over a month before settlement. With a 730 Credit score and seemingly solid real estate, why not go to a bank and get far better terms.

[email protected]

1 Reply

See this reply in the discussion

9 Replies

Jump to latestLatest

Sort by

Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
18h
Based on what you shared you are bankable and the real estate was not an issue, so the glaring question is why did you choose to use this lender? Doesn't sound like this was a property where you were under any pressure if you received terms over a month before settlement. With a 730 Credit score and seemingly solid real estate, why not go to a bank and get far better terms.
[email protected]
1 Reply
Sagi Gliksman
Lender · Indianapolis · Member since 2025 · 26 posts · 7 votes
16h
Unfortunately, because business-purpose investor loans aren't covered by standard consumer TRID rules, shady shops take full advantage and hide the ball until you're too deep in the deal to back out. Moving forward, make it a rule to demand a written fee worksheet before you pay for an appraisal, and if anyone dodges giving you the exact PITI and origination breakdown upfront, cut bait immediately. Plenty of lenders and brokers in the investor space have zero issue being transparent on day one, so don't tolerate anyone who treats basic numbers like a state secret.
0 Reply
Stephen Foster
Member since 2026 · 43 posts · 6 votes
11h
Chris, sorry that closing went the way it did. A rate moving after a month-long lock, a junk fee on closing morning and no PITI are all things you can screen for next time. (1) Ask for a written fee sheet and the full monthly payment up front, and whether the lock is in writing and what can change it. (2) Ask for the closing disclosure draft several days before closing, since business-purpose loans don't always get the same disclosures, so you have to ask. (3) Compare two or three lenders on the same scenario side by side. With a 730 score and properties that cash flow, you have real options. I'm a mortgage broker and I do DSCR and investor loans, so if you share the property states and rough loan sizes on your next deals, I'm glad to walk you through the numbers up front so there are no surprises at the table. – Stephen
0 Reply
Stacy RaskinBusiness Member
Lender · Member since 2022 · 1k+ posts · 531 votes
11h
As you have seen, since business purpose loans aren't regulated the same way as owner occupy conventional loans, the terms and fees can be changed upwards at any point all the way up until closing. That's even when nothing has changed on the loan such as having the appraisal come in lower than expected which can affect the loan LTV and therefore the rate.

Also, if a business business purpose loan for a property located in California, the mortgage professional will need an NMLS license to work on the loan. That is an exception as most states don't require a mortgage professional to have an NMLS license to work on business purpose loans such as DSCR loans and fix and flip loans.

It doesn't matter if the terms are put in writing if they are legally allowed to change for business purpose loans. If doing a business purpose loan, it's important to work with a well researched mortgage professional that you feel comfortable with to avoid costing you potentially thousands of dollars and wasted time. An experienced mortgage broker who specializes in DSCR loans can help give lender options with lenders that don't advertise directly to the public. Happy to connect to discuss further.
[email protected]818-770-0340
Bright Skyline517 Reviews
Website View Page
0 Reply
Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
7h
Chris, sorry you went through that. A rate change on a locked loan the morning of closing is exactly what shouldn't happen.
With a 730 score and deals covering 2.7x, you're a strong borrower, and it's worth knowing that profile usually has room to negotiate.
A few things to require on the next one:
• A written fee sheet with every lender and broker fee, plus the full PITI, before you pay for an appraisal
• The lock confirmation in writing, spelling out exactly what can change it
• Final closing figures several days before signing, not the morning of
• Two or three quotes on the same scenario so you can compare line by line
If your properties are in California, also confirm whoever arranges the loan holds an NMLS license, since that's required here even on DSCR loans.
Erik
[email protected]818-269-7983
LuxePrivate Investments LLC 572 Reviews
Website View Page
0 Reply
Ryan BakerBusiness Member
Lender · Strongsville / Cleveland, OH · Member since 2026 · 158 posts · 39 votes
7h
Chris, sorry you went through that. A rate changing on closing day with no updated disclosures is exactly what shouldn't happen.
A couple of things that help going forward: ask for the Loan Estimate in writing as soon as you apply, get your rate lock confirmed in writing with the expiration date, and compare the fees on the Closing Disclosure line by line against the Loan Estimate at least 3 days before closing. If anything moved, they should be able to explain why.
With a 730 score and the income you described, you have options, whether that's conventional or a DSCR loan if you'd rather qualify on the rent. I do investor lending and would be glad to look at your next deal and lay out every cost up front. Give me a call, my number's in my signature below.
– Ryan
[email protected]330-548-3340
0 Reply
Amber Stout
Lender · Tampa/Saint Petersburg, FL · Member since 2014 · 372 posts · 148 votes
7h
Hi Chris, I'm sorry to hear about your experience - that is unfortunate. One of the values I live by is integrity and I do take transparency very seriously with my clients. I've helped quite a few folks finance their investments on Bigger Pockets and would be happy to connect further to understand more about you/your goals and how I can help out.
0 Reply
Joe Piccirello
Lender · Peoria, AZ · Member since 2026 · 51 posts · 13 votes
6h
Hey Chris, I'm sorry that closing was such a rough experience. That's a lot to deal with after you already got to the table.
Closing should feel clear and predictable, not like a scramble at the end. I'd be glad to walk you through everything early and stay consistent through closing on your next deals.
I'm a mortgage broker licensed in Arizona, California, Colorado, Kansas, Texas, and Arkansas, and I like helping investors. Happy to be a resource. No pressure at all! Which states are those properties in, and where are you looking to buy next?
0 Reply
BJ Everson
Realtor · Columbus, Franklin County · Member since 2026 · 155 posts · 61 votes
5h
Chris, the fee-sheet advice above is right. One more thing to check on the loans you just closed: the prepayment penalty. Many investor loans have a step-down penalty for the first few years. At 8.375% with a 2.7 coverage ratio, you'll probably want to refinance if terms improve, so know when that window opens. For the next one, ask each lender for pricing by coverage ratio, loan-to-value and prepay term side by side. A ratio like yours should show up in the rate, and the prepay term is often the biggest lever after LTV. What state are the properties in?
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.