Looking for refinance option

[Darlington Agu]

Hi

Hope everyone is doing well, I’m currently looking to refinance my two properties out of a hard money loan. The lenders ive reached out to (rcd capital and the loan guys ) have both seem to be pretty restricted because of the current market, any advice as to how I could locate a good financing deal in this market. Both of my properties are in Houston Tx and are currently rented out. Any suggestions would be appreciated. Also if you have any experience working with these companies I’d love your input.

[Andrew Postell]

@Darlington Agu Generally speaking there are 2 main types of loans for investors: “Conventional” and “Portfolio”

Conventional - I'll define these as loans that come from Fannie Mae and Freddie Mac (if you recognize those names). These loans are all 30 year fixed rate loans. They have the lowest rates we can find and since they are 30 year fixed...they allow us to cash flow better...which helps us qualify for other loans later. The draw back to these loans is that they are more paperwork heavy than the other "portfolio" types of loans....but if you have ever received a loan on your primary home, it's likely that you will go through the same type of paperwork here with conventional lending. Fannie/Freddie money = Fannie/Freddie rules. NOT the bank's own money.  THIS LOAN TYPE IS STILL LENDING.  

Portfolio - I'll define these loans as loans that come from the bank's own "portfolio" of money. Sometimes referred to as "commercial" loans. These loans are a lot more flexible than "conventional" loans. Bank's money = Bank's rules. If they like you, then maybe they will lend to you. But since there is a limit to how much money the bank has access to....their rate will be higher...and usually a shorter term. The most common portfolio style loan in Texas is a 20 year adjustable rate loan. These loans are easier to get but the terms are different.  THESE LOANS ARE STRUGGLING RIGHT NOW.

Do you know if you will qualify for the Fannie/Freddie type of loan?

@Chris Mason thanks for the mention!  And yes, things are going very fine here.