Trustco Bank: a review and recommendation for fellow investors

[Sunny Burns]

Since not much has been said about this portfolio lender and they have been so instrumental in starting my investing career - I wanted to write up a quick review.

Some highlights about this banks residential mortgage offerings for owner occupants:

-Will finance for up to 4 family properties

-10% down for 3 and 4 families, and I believe 5% down for SFH and duplexes

-No PMI

-Low closing costs ($9.8k for our $430k)

-Competitive Interest Rates (Just re-fied a couple months ago for 3.49% 30 year)

-They will consider your rental income as income even prior to two years of tax returns as long as you have signed leases.

Anyway before I get people too excited, they will only lend in counties that they have a branch in, below is a list:

New York: Albany, Columbia, Dutchess, Greene, Montgomery, Orange, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Ulster, Warren, Washington, Westchester

Florida: Brevard, Charlotte, Hillsborough, Lake, Manatee, Martin, Orange, Osceola, Palm, Polk, Sarasota, Seminole, Volusia

Massachusetts: Berkshire County

New Jersey: Bergen County

Vermont: Bennington County

So I was just at their Ramsey NJ branch last Friday, trying to get preapproved for our second investment property we are on the lookout for. I tried getting preapproved elsewhere but because the other banks wouldn't consider our rental income (Most banks have a rule where rental income won;t be counted unless it appears in the last two years of your tax returns). Trustco being a portfolio lender who doesn't sell its loans doesn't have to abide by the same rules, and just required us to show us their signed leases and counts the income. So now our debt to income ratio should now be low enough to be approved for our next rental property.

Here are some more details:

I asked the branch manager a few questions and it seems that they are fairly selective as to who they will lend to.  She said they usually want you to have a pretty good credit score, she has seen a person without credit history get approved at the low 600's but they immediately reject anyone with bankruptcies, or serious dings in their credit.

Anyway I just wanted to share this information, because a year ago when I was buying my first rental property I was in quite a pickle, until a biggerpockets member mentioned Trustco. I feel they are a very good choice for anyone looking to owner occupy and house hack their way through some rental properties.