Any solid mortgage companies for Austin people?

Question

I've reached out to a few companies but they seem really halfassed and sometimes shady. Who do you recommend? No personal ads please

Joey Sullivan · Answer

Here are two Austin based mortgage brokers who have taken very good care of our clients who refinance out of hard money and into a conventional loan for their buy-and-hold properties:

• Jeremy Lewis with AMP Lending
• Donna Fox with Barton Creek Lending Group

Charlie Chung · Answer

I'm working with Max Leaman now, who was referred to me by my agent. He's very fast, responsive, with streamlined fees:

https://www.yelp.com/biz/max-leaman-austin-mortgag...

Jacob Pereira · Answer

If you're looking for a conventional lender, they're all fairly standard. They all follow Dodd-Frank, They all have similar funding requirements, and almost all will sell your loan off after it's been funded. That said, some will give you a slightly better rate than others. I'd recommend you choose standard terms and ask what each lender's rate would be based on those terms. I'm guessing that's not what you're looking for, though, because they're so heavily regulated that there is really little opportunity to be shady.

If you're looking for hard money, it's all over the map, but I can tell you what I ask for. 1st lien with purchase price at 70% of ARV or below, money paid out in tiers, based on project progress, 4 points on the front end and 12% interest-only (essentially 1% of the loan is paid back each month) with  6-month amortization period. From my understanding, this is fairly standard for hard money. Based on the wording of your question, I'm assuming that hard money is what you're shopping for. Keep in mind though, even hard money lenders are still regulated by lending laws, just not the same strict ones that subsidized residential loans are.

I don't have much experience with commercial loans, but from what friends have told me, it's highly variable based on the deal. If you can wow your banker with your presentation and the strength of your position, you should do fine. I'm assuming that this type is not the kind you're looking for because generally bankers who half-ass it don't end up in commercial loans.

Did I miss any types? Either way, let us know what you find out.

Bryan Hancock · Answer

It really depends on what you need.  Andrew Miller:

Andrew Miller

at CLS is a good choice.

If you just need a FNMA loan pretty well every bank in town can do that.  Amerisave.com is a good choice for that need or you can check The Mortgage Professor's Upfront Mortgage Company list.

Tucker Ramsey · Answer

Brendon C.

Stewart Anderson with New Horizon Mortgage.

Here is the link to his website Stewart Anderson

One of the best and most reliable mortgage brokers in town.

Ben Stoodley · Answer

Brendon C. there are definitely a handful of reputable hard money lenders servicing the Austin, TX area. We have done numerous fix and flip loans in Austin over the past couple years and we keep hearing about more competition, so I know there are options! As most people have replied, there is always a range on rates, but generally 10-12% interest and 2-4 points is a good general threshold of expectations. Be careful of hidden fees, always ask the lenders about "all charges paid at close" and ask for a closing statement. Further fees might be found in the fund control process with wire fees, inspection fees, draw fees, etc. ALL of these type of fees can be saved by using the right lender. Anyways, feel free to reach out for more info! Good luck!!

Jacob Pereira · Answer

@Alex g,

Thanks for the offer, but I only loan money, I don't ever borrow hard money. I'm not a flipper, so the rates that hard money go for would bankrupt me. Also, I tend to loan in the sub-300k market, which may account for the rate difference between your guys and me.

Alex G. · Answer

@Jacob Pereira   I think you had a minor typo there when you spoke about hard money loans. You probably meant a 6-month balloon rather than 6-month amortization.  I  often type a bit too fast for my thinking ;-)

By the way, I always negotiate a 12-months loan just to be safe, even when I'm counting on turning a deal in 6 months. If you ask, you can get 6 months changed to 1 year upfront nearly every time and avoid paying extension fees on a shorter term loan. More importantly, 12% + 4 points is somewhat expensive for this HM market we have in Austin. There are companies and individuals here that offer 12% + 2 points.  If you're paying 4 pts on your deals you might want to look up AJ Shield with Baymount Capital. Feel free to PM me if you like his contacts.  Also I met some private folks at a couple of local meetups who are willing to do the same 12% + 2 pts, or even lower.

Maria Tan · Answer

Brandon Sparks of Barton Creek Lending Group.  The mortgage was for a non-warrantable condo in the Allandale area.

Jarrod Weaver · Answer

I regularly use Tracey Day at Georgetown Mortgage. He is experienced, honest and reliable. Everything you need from a member of your team.

Any solid mortgage companies for Austin people?

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