Multi-family Lenders
Does anyone know of a good site to find milti-family lenders doing non owner, 100% etc. NOT looking for brokers, looking for lenders. Thanks
Does anyone know of a good site to find milti-family lenders doing non owner, 100% etc. NOT looking for brokers, looking for lenders. Thanks
That is a question for a broker. I would suggest you use one.
Most residential lenders and banks will loan up to 4 units. Some will have high LTV programs for NOO and some won't.
More than 4 units is considered commercial and that is tricky to do on your own. I would definitely recommend working with a commercial broker if you're seeking financing in that arena.
I too try to avoid brokers any chance i get; but i think you would be well served to talk to 3-4 brokers and see if you like their style. My experience is that working directly with 'lenders' is a big waste of time.
If you want to work direct, call your locally owned banks and find one that will originate multi-family loans, since the money will come from them, you won't be spinning your wheels like I used to when trying to save 1 point brokers few.
Enjoy!
You will probably have to use a broaker, 30yr fixed multi-family <=4 units is around 7.5% here. >4 its commercial, a local bank commercial dept may do 100% if you could put down 15-20% in some other form of equity (other RE, stocks, etc).
As a broker, I'd just like to offer the following comment.
I fully respect a borrower's desire to go straight to a lender. Many, many times I've advised a borrower to go to the bank first and ask some questions I suggest, and then come back to me if they are unsatisfied.
The problem with going straight to lenders who do the 100% deals on non-owner occupied residentail, or the 'interesting' commercial deals, is
1. that most borrowers don't know how to present their deal to the lender, and
2. most of the lenders with such program work on a wholesale basis and don't want to talk to the borrower due to the complexity of the loan.
There are plenty of 100% lenders on 1-4 family properties, none of which work directly with the borrower. I don't know of any traditional banks that work with these lenders, and certainly the fannie/freddie 100% is only on owner-occupied deals.
So as an 18 year-experienced broker, I don't know how I myself would find such lenders if I didn't use a broker.
After you close a few loans using brokers, you can go back to the lenders that have worked well for you and try to work directly with them. It may be good to have a broker on your side for the first couple of deals. Make sure that you screen them. Just about every broker out there will say that they do commercial loans, because they just see a big pay check. Often times they don't know the first thing about it, and you become their guinea pig. Ask them about deals they've funded, creative deals, how big, how small, average size, etc. Get a feel for what they're all about.
I am a broker as well and have agree with Decisionman. While every consumer has the right to go directly to a lender, they will not get any 100% programs offered to them. Not to mention that we as brokers get wholesale rates. These lenders offer programs that will no consumer will ever get access to. Plus, not to mention that many lenders do not even deal direct with the consumer.