All Forum Posts by: Jeff Low

@Chris Bluem

I'm doing a HELOC on an investment property with them right now. They've been the worst lender I've ever dealt with, though I know this is against their reputation. The processor was(is) completely disorganized, they were VERY slow, didn't know what to look for or ask, would say she asked for documents when she didn't, went on vacation or out of office a week and half before we needed to close by the end of the month, her boss was unresponsive though they finally had someone get back to us, and then they said we missed the close date and need to wait another month. The issues we had could have been resolved weeks ago.

If you have another lender, go with them. I have $50k cash tied up in an investment because PenFed doesn’t know how to process loans.

@Lauryn Meadows

Hi Lauryn,

Would post the link to the 10K grant? 

These EIDL loans will not be forgiven. There is currently a $10k grant that can be applied for. See links above.

The loan forgiveness people are referring to is a component of the new Paycheck Protection Program loan. The PPP loan is likely NOT eligible for rental property owners.

Also, if it were, the PPP loan size is based off of payroll from the prior 12 months times 2.5. Most rental property owners have limited payroll, even if for independent contractors.

Also the forgiveness is only for an 8 week period after the loan origination and the funds must be used for specific purposes, such as payroll. It is incredibly important to understand the PPP loan is not a blanket forgivable loan, there are strict rules attached, and it is likely NOT eligible for rental properties.