Investment property lending freeze

[Kevin Lisewski]

I had been pre-approved for two investment property mortgages through Redfin mortgage. Today I checked rates on their site, and there were none even with great credit and a 25% downpayment.

According to my loan officer, Redfins investors are not purchasing investment or second home mortgages right now, and expect them to come back in about a month.

FYI that it looks like lending for conventional investment property mortgages is drying up.

[Chris Mason]

Out of my 38 partner lenders, exactly two are still doing rental properties without a zillion overlays or crazy jacked up rates. The other 36, it's either stupid overlays or jacked up rates. 

What the pair have in common is a) they didn't drop rates during refi mania a month ago (ergo no need to jack them up or add a bunch of overlays today) and b) they are small under the radar lenders.