Current state of financing non-owner occupied single family homes?

[Toben B.]

It seems just when the deals are getting really good the banks are all getting cold feet.

The last 2 houses I bought I did a home equity loan against my own house and paid cash for the properties I bought. They were 48K and 49K so the loan fees were pretty high for a small loan, hence the home equity deals.

Now there is not much equity in my own home to borrow against so for my next deals I am forced to use bank loans against the houses I will buy.

My credit score is good and the terms I am getting offered are 5.375% plus 20% down + 3.5 points.

I don't mind the down payment, but 3.5 points is way too high in my opinion.

Is anyone seeing better deals out there with banks for houses you will not live in? And no I'm not interested in hard money lenders with their 12% interest.

I am doing rental properties as I understand that business model the best.