1st Investment Property... How should I choose the Lender?

[Benjamin Blackburn]

Good morning Everyone,

I’m wanting to see if I would qualify for a second loan and I’m wondering if I should start reaching out to the first lender I went with for my primary residence (CapitolOne) or start reaching out to other smaller companies? I’ve read a few forums regarding Larger Banks vs Smaller Banks but they seem a little out dated so I was wondering if things have changed lately or if there was anything I should be keen to when searching for lenders for my first “Investment” property.

Thanks you all. Have a great remainder of your day!

Ben

[George Despotopoulos]

Hey @Benjamin Blackburn I agree with @William Murrell. If you still qualify with traditional lenders then local community banks are great as are portfolio lenders. There are also a bunch of online lenders that are basically non-bank mortgage lenders. The fees and rates are a little higher but they qualify you based on the rental property's income or, if you're doing a flip, on the property's value. Rates will be around 7% - 9.5% for rental property  loans and 10% - 14% for fix & flips or buy/rehab/refi projects.

Let me know if you have any questions!