Does your rental property usually stand good for the loan?

[Jon Begley]

I am currently working on my second real estate deal and my first loan for an investment property. I'm working with a loan officer at a small bank that I have a good relationship with and have done things with in the past. The property is a six unit with great cash flow currently priced at $169,000. The bank I'm dealing with will only do a 20 yr fixed if they can have a $130,000 mortgage on my primary residence which is paid off. If I don't use my home the terms are 20 yr with a 5 yr lock at the same rate. Is this typical or should I start shopping around?

Additional Information

• 4.5% rate on either loan
• 790 credit score
• $0 debt
• Good Income

[Tom S.]

@Jon Begley I have two commercial loans and those are almost exactly the terms.  Yes, the loans are against the rental property itself.  

Is the subject property you're getting the quote for 5 units or more?  If not, consider shopping around some more.  I have single unit rental properties with standard 30 year terms.

- Tom