Mortgage Lenders

Hi room,

Does anybody know of any solid and credible mortgage lenders that i can deal with to faciltate my purchase of a renteal property. Specifically, in the 757 Hampton Roads (virginia) area.

Any feedback and/or advice would be greatly appreciated.

I posted this in the financing section for another question but found it fitting for your search. Just some ideas to make sure the person understands investment laons.

Finding the right mortgage consultant for your investments will be important for the growth of your business. Once you have found a professional whom you feel comfortable with he will need to pull credit to review over scores and tradelines. There may be a few short forms to complete as well so that he can intelligently discuss loan options with you. A credit check should not be needed again until another property is ready to be financed. (As a side note, when your credit is pulled by a mortgage broker or auto lender, the bureaus treat up to 15 hits within a 30 day period as one.) The consultant should be asking questions about your short and long term goals so that the appropriate mortgage terms can be matched to the subject property.

There are many lenders a broker can use and most of them offer the same programs. A handful will even allow 100% financing for 1-4 units. However the guidelines may be slightly different at each. Some of the key points lenders will consider are listed below.

  1. How many properties are currently financed?
  2. How many properties have been purchased in the past 6 months; in the past 24 months?
  3. Does the borrower have landlord experience?
  4. Will the subject property have a negative cash flow?
  5. If the borrower doesn’t show enough income he may need to go stated, no ratio, or no doc
  6. Usually a borrower will need 6 months of reserves. (6 months of principal/interest/taxes/insurance) If multiple properties are being financed, reserves for all may be required. This could also apply for properties purchased in the past 6 months. If funds are not available the borrower may need to go stated or no doc.

The variation of these is why long term goals need to be addressed. Certain lenders will need to be used first as their property restrictions will prevent financing. The lenders that allow unlimited properties usually have higher rates and should be used as the portfolio grows. In some cases, as the equity increases, investors will use a local bank to obtain a blanket refinance loan in the name of an LLC.

Speaking of an LLC, it will be important for you to be teamed up with other professionals who can give tax advice and estate planning advice. Your mortgage consultant can work hand and hand with them as well.

A great mortgage consultant should also be able to provide answers on how to qualify for 100% rehab financing. They should also be able to explain how lenders can approve 90% cash out refinances with no seasoning of title. This will be valuable if you complete a rehab or have purchased a property well below market value.

So far this only address the knowledge your consultant must have. Don’t forget about service. This includes communication with you and the real estate agents involved. Every transaction goes through the same process. Within this process there are some key events which can be updated to everyone. Part of service also includes helping you manage the terms on your portfolio. A professional should be aware of how mortgage backed securities affects interest rates and have an opinion on what direction the market is heading. As your consultant he can notify you periodically of new loan products or lower rates.

I hope this has helped give you an idea of the service that real estate investors are entitled to.