All Forum Posts by: Hanyai Bungals

Hello, A bit of background - I am attempting to secure financing for my first multi-family home to the tune of $150k in the Southwest Houston area. Based on previous advice that I've received on BP, I approached about 15 credit unions in my vicinity to see if they would be interested in lending. However, I've been getting the run around, with no clear indication as to loan terms. Has anyone else experienced difficulty acquiring lending through credit unions vs. larger banks? Does anyone know of any reliable credit unions in the Houston area? Also, given the situation described above, would anyone suggest I try my luck with the larger banks? Besides having more conservative loan terms, are there any benefits of pursuing financing through a larger bank vs. a credit union?

Hello, long time reader here.

My business partner and I have discussed different real estate opportunities, and we have decided to go forward with purchasing a 4plex rental property for around 100-150k.

We've spoken to a few credit unions to acquire financing for this property. From the feedback we've been getting, they are willing to structure the loan as a 5 year note with a 25-year amortization schedule and then a balloon payment in the 5th year. We would definitely prefer to have the typical 30-year (or 20 or other longer-dated term) mortgage so that we can match our rental income against our mortgage loan payments (and also not have to pay a large, out-of-pocket balloon payment at the end of the 5th year).

So my questions are:

(1) Do credit unions/banks/conventional lenders typically offer a 5 year or shorter duration loan for real estate investment properties -- or are there ones willing to do longer term?

(2) Is there anyway around this? We've considered the possibility of us living there for a little while so that we can get a residential loan, and then eventually making it a full rental property although I'm not sure about the legal or other type of consequences of that (could the bank claim that violates the terms of the loan and call the loan? ...do they even check this?)

(3) Are there any other creative financing methods for a property? Or any other solution to this issue?

Thank you in advance!