Investor Loan Availability

[cainvestor]

Can anyone help with loan options for investors....

I like to think of myself as a responsible investor. I have been buying investment properties to hold long-term since 1995. Consequently, I usually take out 30 year fixed loans and most properties cashflow.

However, is there anyway I can benefit from lower interest rates and refinance existing loans into lower interest rate loans? I have equity and good credit (FICO 740 +). I just keep getting told that because I own more than 4 rental properties that I cannot get a new loan.

Also, I do have one property that I refinanced in early 2007 to take money out to remodel. My plan was to subsequently sell the property which I had owned for 5 years. Because I intended to sell in a year or two, I took out a jumbo loan with BofA that is 7% interest only for 7 years (rather than a 30 yr fixed fully amortized). At this point, the property no longer cash flows after the remodel expense. LTV at time of loan was probably around 60% and now probably about 70% LTV. Would BofA consider a modification to a 30 yr fixed, I can't pursue refi b/c I keep getting told I own too many properties?

I did call BofA once and the response I got was that they would issue me a credit card that I could charge mortgage payments if cash flow was an issue - I couldn't believe response and dropped efforts until I came across this web site.

I know other people's situation are much worse, but any info would be appreciated. Thank you.

[HopingtoFind]

Hi Cainvestor,

Welcome... It is true that it much harder currently for investors to qualify for loans since Fannie and Freddie who purchase most of the conforming loans have set a limit of 4 per person.
The only thing that I could suggest at this point is to talk to your local banks... other then that you would have to go for commercial loan, which do not offer as good of interests and terms..

As far as loan modification on your existing property, you could definitely try.. you would need to have a hardship...They will ask you for your income and expenses... In general lenders want to see either a small surplus or a small deficit but it is ultimately up to the lien holder (investor)..