Finance for out of state investing

Member since 2021 · 3 posts · 8 votes

When investing out of state, can you use a loan from your local bank or do you need to use a loan from the area you plan to invest in? Thanks for the help!

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Patrick DruryBusiness Member

Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes

@Jon Troxell
You can use banks from California that lend to multiple states. Although from my experience they are slower, and have a lot of trouble ordering an appraisal. I had a client in contract on a 6-unit with a 55-day contract and by day 30 this lender still was unable to get an appraisal ordered. I was able to finally convince my client to go with a local lender who had better rates, and terms. Also, he was able to get the appraisal ordered in 7 days. The local guys know the market best and will be able to get the deal closed. Just ask your agent for some lender referrals.

[email protected]614-412-4565

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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
4y
@Jon Troxell lots of lenders lend in multiple states. Just ask them.
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Brandon BeardtPro Member
Lender · La Crescenta, CA · Member since 2021 · 261 posts · 157 votes
4y
Quote from @Jon Troxell:

When investing out of state, can you use a loan from your local bank or do you need to use a loan from the area you plan to invest in? Thanks for the help!

Hi Jon,
If I'm not mistaken, I believe if your local bank/credit union has a branch in the out of state area that you're looking to invest in, you'd be able to use them. Otherwise, if your local bank only has 1 branch in your area and you're looking out of state, I don't think they'd be able to help you with conventional loans. There are licensing laws in certain states that require the branch/company to be licensed in that particular state in order to originate loans there. If you go the Non QM financing route, that wouldn't be a problem. You'd be allowed to get financing in almost every state. After initially reading your post however, I'm not sure if that's something you have any interest in. If it is, don't hesitate to reach out. Best of luck to you sir!
[email protected]818-726-2418
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Patrick DruryBusiness Member
Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
4y
@Jon Troxell
You can use banks from California that lend to multiple states. Although from my experience they are slower, and have a lot of trouble ordering an appraisal. I had a client in contract on a 6-unit with a 55-day contract and by day 30 this lender still was unable to get an appraisal ordered. I was able to finally convince my client to go with a local lender who had better rates, and terms. Also, he was able to get the appraisal ordered in 7 days. The local guys know the market best and will be able to get the deal closed. Just ask your agent for some lender referrals.
[email protected]614-412-4565
Reafco-556 Reviews
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Danny Jimenez
Investor · Los Angeles Ca · Member since 2021 · 45 posts · 34 votes
4y
As mentioned above, you can basically get the loan anywhere you'd like. (From the state you are in or from the state you're looking to invest in).
Non-QM loans basically gives you the ability to get financing anywhere.
Depending on your strategy, id look into contacting local small banks in the area you are looking to buy as they might offer better rates!
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