How to get competitive loan rates when financing paid off rental?

[Eric O.]

So we pay cash for rentals using a HELOC from our primary residence and then obtain financing on the property after the fact. Proceeds from loan pay off HELOC. How do we get competitive 1st mortgage finance rates? I have used a couple of credit unions who lend on investment properties and they will only allow me to get equity loan on paid off properties with loan rates around 6%. If I were to buy property using their financing, instead of paying cash, it'd be a conventional mortgage with rates around 3.25%. We buy with cash so we can act fast and to make it attractive to seller. But then can only get a 6% loan? This doesn't make sense to me. If my offer included traditional financing I could get 3.25%. What do I do? Finance to 6% equity loan to put a loan on the property and then refinance to 3.25% conventional financing? Seems like a pain. Am I using wrong lender? Thanks for responses.

[Shaun Weekes]

Originally posted by @Eric O.:

So we pay cash for rentals using a HELOC from our primary residence and then obtain financing on the property after the fact. Proceeds from loan pay off HELOC. How do we get competitive 1st mortgage finance rates? I have used a couple of credit unions who lend on investment properties and they will only allow me to get equity loan on paid off properties with loan rates around 6%. If I were to buy property using their financing, instead of paying cash, it'd be a conventional mortgage with rates around 3.25%. We buy with cash so we can act fast and to make it attractive to seller. But then can only get a 6% loan? This doesn't make sense to me. If my offer included traditional financing I could get 3.25%. What do I do? Finance to 6% equity loan to put a loan on the property and then refinance to 3.25% conventional financing? Seems like a pain. Am I using wrong lender? Thanks for responses.

 You're using the wrong lenders.  What are the scenarios that you're working with and what states are you buying in?