Recommended Lenders for Rental Properties

[Graham Williams]

Just got my first single family rental property under contract and am looking for recommendations of good lenders in the greater Houston area. Let me know who you guys have had good experiences with. 

[Andrew Postell]

@Graham Williams there will be lots of lenders who say that they can do lending in Texas and there are certainly a lot of good banks out there (some mentioned above have good reputations).  I would recommend that any lender you speak with on investment property lending to ask some specific questions:

1. When do you start using rental income to help me qualify? (the answer needs to be immediately)
2. How long do you need me to be on title to refinance? (this is important if you do need a short term loan to purchase then refinance out - and the answer should be 1 day...very important that it is 1 day on title is all that is needed to refinance)
3. What is my minimum down payment required? (not so important but if they only require 15% down on a single family home that is usually a good sign that you are working with a flexible lender)
4. Can I change title to my LLC?
5. Do you sell your mortgages?
6. Can you explain to me what your reserve requirements are?
7. What is your closing time? (super important if your seller needs to close quickly)

If the lender can answer these relatively quickly, without having to go ask people for answers, then you know you are in a good spot.  Feel free to tag me if you have any other questions.  Thanks!