Recommended Lenders and Banks in Baltimore MD

[Lukasz Kownacki]

Hello,

What banks would you guys recommend in Baltimore MD for new real estate investors? I was told that community banks are better for under 100,000 loans, is this true?

Thank You,

[Ned Carey]

Yes smaller community banks are better. 

The reason is they are often "Portfolio Lenders".  In other words they keep their loans instead of selling them to the secondary market.

Big banks have strict criteria for their loans. If your loan doesn't meet this specific criteria they don't make the loan. Large and medium size banks often sell their loans to the secondary market (Fannie may, Freddie Mac Etc.) These secondary lenders also have strict criteria. They buy hundreds of thousands of loans. They do not have the time to analyze each loan so they also set strict criteria. You either meet the ideal norm or your loan gets denied. 

Small community banks often keep their own loans. This means they do not have to meet the criteria of a secondary lender. They can look at your overall profile in more detail and say this loan makes sense.