Financing in 24060>Question Details

Investor R, Home Buyer in 24060

Has it become less appealing for mortgage brokers to lend to investors of late?

Asked by Investor R, 24060 Tue Jan 27, 2009

I am a small time real estate investor. Of late it seems like mortgage brokers are not too keen for lending to investors like me. I had asked for a mortgage quote from 3 different lenders and only one of them got back to me. That company was charging me a 1% fee for the loan in addition to normal underwriting charges. When I asked why they replied:
"1% is our charge for the loan. On investment properties we cannot
get the loan setup without the 1%. We normally do not have to charge this
as the lender pays us but on investment that is not the case currently."

Is above correct or is the broker charging me too much?

Thanks

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Investor R, thanks for the question - sorry for the delay in getting back to you, but I hope I'm not too late to help.

It sounds as if the broker who's charging you the 1% is trying to protect themselves a bit more than they have in the past. So many of those investor loans nationally have defaulted, for a number of reasons, that they're trying to hedge their bets. In the past six months, I've been able to get investors approved for loans ranging from $150000 to nearly $1000000, but it's not been without a few extra hoops. Nothing too difficult, though.

I'd recommend a couple of local folks here in Blacksburg - if you'd like to email you, I'll pass on some names at those banks that have done a good job with my investors recently. No obligation, glad to point you in what might likely be a better direction.
0 votes Thank Flag Link Mon Feb 2, 2009
Hello Investor R, I have been chatting with several mortgage brokers and am seeing a trend that may explain your situation. Since so many lending institutions have merged and or closed their doors brokers have fewer places to source money from. In addition, lenders are raising the the requirements for brokers to submit to them. In the past brokers could submit 1 loan a year and keep their standing with a lender. Currently, lenders are requiring 4-6 loans a year to qualify. If a broker in the past has not done enough business with a lender they are being cut off..so to speak. When we lost so many heavy hitters in the lending arena the brokers lost several resources and now they may not qualify for the resources that are left.With their ability to "sell" loans to fewer lenders they are seeing huge cuts in their ability to process the number of loans therefore a cut in their bottom line. We may see few mortgage brokers out there in the near future. Your best bet would be to check with a local lender or a broker that is directly affiliated or under the umbrella of a lender. I am happy to email you a list if you are still in need. No obligation just assistance. Good luck and thank you for continuing to invest.
Web Reference: http://www.justjanet.com
1 vote Thank Flag Link Wed Feb 11, 2009
There is a new Fannie Mae program you may be interested in. On certain homes investors can buy with only 10% down, no PMI and no appraisal is required. I would love to talk with you more.

Thank You,

Dominique Ressurreicao
Co-Branch Manager
American Pacific Mortgage
559-892-6812
0 votes Thank Flag Link Wed Feb 11, 2009
Hello, investment properties are not as easy to finance anymore but there are still a few programs that would not cost you so much. I would love the opportunity to get you a quote. Please call or email me.

Thank You,

Dominique Ressurreicao
Co-Branch Manager
American Pacific Mortgage
dominique@apmortgagepros.com
559-892-6812
0 votes Thank Flag Link Tue Jan 27, 2009
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