Board Topic: Out of state/far way places financing
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Out of state/far way places financing

Posted by: Adrian Apr 28 2004, 09:43 AM
I'm looking at several properties that are out of state (I live in ny), and long distance areas. I was wondering, how would I go about getting mortgages, financing etc for those properties. Should I go to a local bank around my area? or one that's at the location of the property? My concern is, I can't constantly driving out to those places just for mortgages/financing. Is it possible do it by phone, fax, email?
Also, I ran into this problem recently at my local bank. I want to get finance on a 3-4 families houses, I thought it was a commercial, but the loan officer told me it's not. Only 5 families or more are considered commercial. Is this true? If yes, how will the interest rate work (less than commercial, but more than regular mortgage)?

Posted by: loanuniverse Apr 28 2004, 10:22 AM
Should I go to a local bank around my area? The loan would be a better fit for a bank in the area where the property is located. If the property is out of state and the bank does not have a presence in that state or even in that county, this would be considered as an out of area loan, and it would be another hurdle in the way. I am not saying it is not possible to do the loan, it is just less likely.

Is it possible do it by phone, fax, email? Well yes, but I would make it a point to visit a couple of lenders while I am visiting the property. After all, you are not going to buy it without seeing it, right? Then you can do a lot of the paperwork by mail, and only have to show up for the closing. You need to press the flesh.

I want to get finance on a 3-4 families houses, I thought it was a commercial, but the loan officer told me it's not. Only 5 families or more are considered commercial. Is this true? First thing that comes to mind is that you probably talked to an aggressive residential lender. In my opinion, which is worth as much as what you are paying for it, the 3-4 unit property can only be considered residential if you are going to live in it. While it is true that you can get loans for these properties under residential loan programs, I believe that this option goes out of the window when you are not going to use it as your primary residence.

If yes, how will the interest rate work (less than commercial, but more than regular mortgage)? I think you can get the rate from banks in your area by visiting a couple of their websites or giving them a call. On the other hand, I think that you are really looking for a commercial loan.

Posted by: don Apr 30 2004, 08:47 PM
Adrian,
I work with investors all over the United States and have never met them face to face. It is important that you trust the individual and develop a working relationship. What I do is creat a file and when they call me I already have there details. All I have to do is add the new scenario to the mix. If you need help give me a call.
Don Lepley
RBC Mortgage
email

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