Who's a good lender for out of state property investing?

Question

Opinions, who's a good lender for out of state investing? Also, where do I find my lender? In the state I'm investing in or my home state? Thanks for any help.

Jaypee Pau · Answer

Great question I’m in real estate and help folks with this kind of thing a lot, and honestly, this comes up more than people expect.

You can use a lender from either your home state or the state you're investing in, but I’d recommend someone who’s licensed in the state where the property is. They’ll usually know the local property taxes, title process, and what underwriters tend to flag in that area (especially if you're buying something unique like a short-term rental, multi-unit, etc.).

I’ve seen clients have the best experience with smaller, investor-friendly lenders or brokers they’re more creative and responsive than big banks. If you’re planning to house hack or use the property as a second home first, definitely ask if you qualify for low or even 0% down options. Not all lenders mention those upfront.

I’d say start with referrals from a good local agent in your target market or ask here if anyone has someone they love. The right lender makes a huge difference, especially when you’re buying remotely.

Bradley Buxton · Answer

@Theresa Pisani

Find a local lender in the market you want to invest in because they will have local knowledge of the area and can offer other advice for areas to buy (or not buy) and have likely worked with local appraisers and agents that can get a deal closed. Check lender fees not just the rate. Areas like Lake Tahoe also have some nuances to getting a loan due to insurance costs and land use.  When shopping around, take out the 3rd party fees (Taxes, escrow fees etc) and buy downs to help compare lender costs.

Kerlous Tadres · Answer

I would recommend finding a lender who specializes in out-of-state investments. Some national lenders have great programs for investors, but it's also worth checking with local lenders in the area you're investing in, as they may have insights into the local market and offer more flexible terms. You can start by looking up lenders who work with real estate investors or checking with other local investors for recommendations.

Andrew Syrios · Answer

We've always had the best luck with local banks, but they will likely be hesitant for an out of state investor doing her first deal there. Perhaps a DSCR lender would be a good approach if you don't have luck with local banks. We just did four loans with LoanBidz and I thought they were very good. 30 year fixed is nice, but the fees are high (2 points plus admin fees), although I think that's pretty normal for DSCR lenders.

Alex Olson · Answer

Local banks are best bet in KC. I have 5 or 6 here in Kansas City that do well for clients.

Joyce Ann Magallanes · Answer

Hi there, Theresa!

What type of transaction are you looking for? If it’s for a Fix & Flip, most lenders typically require you to have a signed contract with a local general contractor if you’re investing out of state.

If you’re considering a DSCR Loan, you’re generally okay to purchase a rent-ready property, though some lenders may ask for a property management agreement to be in place.

The right lender often depends on the type of deal you’re pursuing, but you can work with lenders based either in your home state or the state you're investing in, as long as they operate in both.

Samuel Diouf · Answer

Hey Theresa, what markets are you looking into?

I typically try to work with lenders who have a lot of experience in the market I'm investing in.

Mitchell Kosek · Answer

I've heard great things about Freedom Mortgage thus far

Scott Wolf · Answer

Hey Theresa, there are many national firms that can assist you with investment loans (like mine!).  It's best to find a good fit that understands your strategy, can be a resource for you, and can lend in the state you're looking at.  Feel free to reach out to see how I can be of assistance.

LaMancha Sims · Answer

There Are Lenders Who Lend In All 50 States, So It Doesn't Matter If The Property Is In Or Out Off State, But There Is A Column In Here For Lenders Like Myself I Hope That Helps.