Any recommendations for lenders?

Question

Any recommendations for a good lender to buy my first rental property?

Also has anyone ever worked with One Brokerage? If so, what was your experience like? Pros and cons?

Robin Simon · Answer

One Brokerage should be a great option if you are purchasing your first rental property, especially if you have a W2 and are a good shot to qualify for conventional financing.  They should have multiple options and loan products / lenders to choose from and be able to walk you through all your questions

Account Closed · Answer

Hi Shandy:

I just sent you a message.  If you have questions, or want a 2nd opinion and want to compare numbers, feel free to reach out

Jason Wray · Answer

Shandy,

The best investment rental program is under a Portfolio program with a bank.  That offers the lowest down payment for any 2-4 Unit rental at 85% LTV that’s 15% down.  All other brokers, lenders and CU's are going to hit you with 20-25% down plus points.  There are some decent programs for single family but you will get hit on rate and points with all brokers.  Brokers do not service the loan so they have to recoup their compensation plan or branch bucket margin.

A portfolio program is the banks true private funding program that can help offer lower down payments and less in fee's.  It will be on an ARM product but your more than likely going to refinance within the first (3) years regardless.  Usually for cash out to buy again or to lower the rate when rates move back down in the next 3 years.

Always compare notes on are you paying any points, what is the prepay if any,  What is the APR not just rate, are you buying the rate down if so cost versus burn rate, find out if your LE loan estimate is a "Locked LE" meaning locked offer and for how long is the rate locked for, I would require a 30 day lock.  Can you close in or transfer to an LLC if needed.

Juan Lara · Answer

Shop around for multiple options. Ensure they have good customer service, competitive rates, good reviews, and an online presence, and don't ask for money upfront. Start with a phone call to get a feel of the lender, if you like what you hear try and visit their office if you're able. Meeting the lender in person will give you a better read.

It also pays to go prepared and have a questionnaire ready about anything you might need to know, including all product details, how the company operates, how flexible are they with their clients, what their response time is, etc.

Stephanie P. · Answer

Get multiple quotes.

Have multiple conversations with brokers and lenders and get a feel for the loan originator.  If they answer your questions, if they pick up the phone, if they answer their emails and if they don't ask you for money up front and if you feel comfortable talking to them, move forward.  If one of those things in the last sentence doesn't happen, move on to the next one.

Erik Estrada · Answer

Hey Shandy,

Do you currently own a primary residence? Most lenders would like to see that you own a primary or another rental property for the past 12 months. There are a handful that do not have this requirement.

Also what kind of financing will you need? Will the properties need any rehab work? Are these properties short term or long term rentals? Giving a broker the full picture will save you lots of time, hassle, and money.

Dave Skow · Answer

@Shandy Victory- thanks for the post ....definitely  get  fully approved before beginning to  look for the  rental proeprty ...this process is  free/ easy and able to be done remotely ....the pre approval process will also help you get organized and  updated on all the  current numbers  (  rates/ fees/  cash needed / payment  etc ...)  ...good luck

Steven Foster Wilson · Answer

I always like to call as many lenders as possible. The more I do that the more options come my way. Through doing that I found a loan for first time home buyers that they did not need to put any money down. It was only for a short time that they ran it although it helped my clients out who were trying to get into the game.

Joshua Townsley · Answer

Using someone who is local MIGHT be beneficial for you versus a larger/national company though those will have more connections to lenders a smaller local company knows the area and can provide insight that others can not. Best of luck!

Any recommendations for lenders?

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