Did you get Conventional Loan in 2021???

Question

Did you guys get conventional loan for investment property in 2021? I couldn't get it last month due to Fanni mae messed up now for RE investors. I'm trying to get one more property through HELOC on my primary house.

If you got a loan in 2021, could you give some tips? or lender information for TN property.

Thank you.

If you got a loan in 2021, could you give some tips? or lender information for TN property.

Thank you.

Stephanie P. · Answer

No, we don't do Tennessee. Sorry @joon lee

Joon Lee · Answer

@Stephanie P. I will check DSCR, I've never heard about that. Thank you. Do you work with TN investors?

@Kyle Deutschmann

Thank you for your information. I will check with another lender. Now, I'm thinking hard money or private money for future investments.

Kyle Deutschmann · Answer

It's not impossible to get a conventional loan on an investment property (I have a client closing on one in like 2 weeks), but the new regulations have certainly made it a little more difficult and have caused a lot of lenders to increase rates/points on investment properties and second homes to reduce the volume they are originating.

Stephanie P. · Answer

Lenders are lending.

If the one you're trying to use isn't, then find another one.  They'll probably be out of business soon anyway (at least for investors).

DSCR loans are closing in about 30 days (way down from where it used to be) and conventional loans, for the lenders that know what they're doing and aren't approaching the 7% Fannie Mae threshold, are closing in about the same time frame.

Stephanie

Joon Lee · Answer

@Ryan Howell Thank you for the information. My 2 lenders said that it take at least 6-12 months to be normal. I will try to contact local banks and credit unions.

Ryan Howell · Answer

@Joon Lee - I haven't personally done one since the new regulations.  My understanding (I'm not an expert) of the situation is Fannie Mae will only allow 7% of qualified loans to be investor or 2nd home mortgages.  This is limiting who can buy the loans on the secondary market and in turn making it more difficult and driving up the rate.  I don't have advice for your area, hopefully someone else will, but you can always try smaller local banks and credit unions.