Is it possible to get 80% LTV on a Triplex Investment Property?

Question

My previous post got deleted... apparently I worded something wrong that made this look like an advertisement or solicitation so... trying again. Am I on a fruitless search to find 80% LTV for a TriPlex?

Thanks!

Lee Mast · Answer

@Craig Jeppesen 15% or 10% on an investment property TriPlex? Can you send me some names of banks I can follow up on? Thanks!

Eric Veronica · Answer

@Lee Mast You are correct.  80% LTV on a 2-4 unit investment property is outside of guidelines for Fannie/Conventional.  Not really sure where everyone else is getting their information.   The only option you have is finding bank who will offer some type of portfolio loan.

There are about 500 posts like this on BP and I rarely see anyone provide actual names.  Usually the answers are   "Call local banks and credit unions"   Have you considered posting specifically in the state specific forum?  Are you part of a local real estate investor group?  Are there any realtor "investment property experts" in your area who might be able to provide you with a legit referral?

In my humble opinion these routes are much more refined ways to search than just randomly cold calling banks.

CJ M. · Answer

@Eric Veronica

I can't speak for others, but I usually advise folks to call small community/local banks for this simple reason...I have VERY solid relationships with my lenders and brokers. The last thing I want to do is refer someone who could potentially butt heads with them and therefore jeopardize my reputation...I've seen it happen.

But to the original question, yes 80% is out there with portfolio loans. I've done quite a few this past year...albeit I had to pay points to do so.

Matty Foley · Answer

@Lee Mast I see many conflicting responses, but here is your answer: Yes it is possible to get 80% LTV but there are many factors to consider. All of the Community Banks I know (and I’ve worked for a few) set internal LTV limits at 75% for investment properties (Triplex or not). 80% would be a policy exception, which Banks try to avoid as much possible; mostly  because loans with policy exceptions will be looked at with more scrutiny by the examiners. Higher LTV also = higher risk. With that said, I’ve certainly done my share at 80%. *In my personal experience, it always helps if you can give something in return to help justify the higher LTV. That may be bringing over you entire deposit relationship to the bank (community banks lifeblood is deposits to find loans), or taking less favorable terms elsewhere, such as a shorter amortization, higher interest rate, or higher origination fee. Another consideration is; if you are a very strong borrower, its likely the Bank may have no issue with 80% LTV because they will want you as a customer. To summarize, it is possible but you may have to shop around a bit - and Loan terms can always be negotiated, so be willing to give a little in order to get something in return.

Eric Veronica · Answer

@Matt Crusinberry I never like to speak for what other lending institutions can or cannot do because I truly do not know.  What I can say is that conventional/Fannie/Freddie loans will not allow 80% LTV On 2-4 unit investment properties (unless there is some special exception program that I am not familiar with)

If the banks that you are mentioning can offer 80% on 2-4 investment  they must have a pretty competitive portfolio loan program.  Sounds like you have done your research and found a couple aggressive lenders!

Matt Crusinberry · Answer

@Eric Veronica, I am amazed that you're not able to do 80% LTV.  S & T Bank or Reliance both will do 80% LTV and 80% on cash out refi (yes, portfolio). I hope this helps when you're lending against these institutions. 75% would fall within our strategy, as we don't take out that much, but being able to is nice. Also, please feel free to reach out, and I can link you up directly with the personnel that has given us several loans on our properties. Good luck to both of you!

Lee Mast · Answer

Thanks Matt, will do. The issue I seem to be having is with the TriPlex. Everyone says they can do 80 LTV on single family not Triplex. But ... I am not one to give up!

Eric Veronica · Answer

@CJ M.  I can understand what you are saying but I guess I have a different take.  As a mortgage loan officer I live off of referrals from past customers. I have had situations where past customers have referred me clients who are unqualified, or pushy or rude. Even in those situations I am incredibly grateful when my name is passed on and I cant understand why anyone in real estate would not want their name mentioned.

Matt Crusinberry · Answer

@Lee Mast, No, this should not be a fruitless pursuit. There are a lot of banks that are offering 80% LTV's on residential properties at this time. I suggest you continue with the smaller institutions, to include the credit unions and such. Good luck!

Lee Mast · Answer

Thanks Matt for that advice!

-Lee

Is it possible to get 80% LTV on a Triplex Investment Property?

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