Tips for finding a good Mortgage officer

Do you find the lenders tightening their requirements for investors as much as for homeowners? Or does it really depend on who you find as a mortgage officer?

Rina

P.S. Thank you for giving of your time to post on the site.

Lending is tightening up for all areas. I have talked to some lenders that will only loan 80% LTV (loan to value) on an investment property, and others have told me they still have lenders loaning 90% LTV on investment properties. So just talk to the lenders and see what they have to offer.

Has anyone found a big difference between banks and mortgage companies. I have gone to 3 different banks and have been told that a 25% down payment is the best they can do for an investment loan. I had one bank tell me that I HAD to use my own money for some of the dp because the bank wanted to make sure I had a vested interest. He told me I could ask the owner to carry 15 percent of my down payment, but I had to put in at least 10 percent. Needless to say, I won't be using them. The bank I am currently working with is trying to get me an 85/15 loan.

I was wondering if it would be possible to go with an HML for the 15% down payment. Or, would the bank find out I did that and shoot me down? Do mortgage brokers work with HML's?

Thanks,

Roni

Right now the way that the market is, a mortgage company will have access to far more lenders and thus have many more places to look to get the loan with the terms you are looking for. Conversely, a bank can be a great alternative if you are an ideal borrower that has a great fico score, 20% down and can provide documentation of all your income including 1040's if you are self employed. The closing costs often times are lower with a bank. The problem being, as investors, first of all most of us don't fit the profile that I explained above and secondly, even if we did, putting large amounts of money down it goes against what Dean's book emphasizes and secondly greatly diminishes the likelihood of purchasing further properties down the road because of tied up capital.

I wanted to also mention that hard money lenders, although expensive, can often times be a big boost in a short term rehab situation or if you need to get something quick and don't have time (30 days or more) to have an A paper lender lend you the money. Once you own the property than you have the option of refinancing into a long term loan at a greatly reduced interest rate. A broker will have access to which lenders will make you wait 6 months to a year for the loan to be seasoned (showing a history of on time payments) before you can refinance. Remember, hard money loans are only a short term solution. They can help you get into a place fairly quickly and less stringently but their rates are going to be between 12 and 15% even with a good credit borrower.

Thanks for sharing.
And remember, if you pay "cash" for a property with re-fi money from another, you probably won't need to wait for "seasoning" to cash-out on the new one. At least that has been my experience on several.

Eric, the info you give is always worth looking into, that is why you are my coach. I like your last question to ask them about doing any creative financing, I can't wait to ask a mortgage broker that, I will need a picture for sure...Jan