Honestly, I think it’s less about the size of the lender and more about the specific loan officer you get. I’ve seen big banks with one person who’ll go to bat for you on oddball income, and others who just say “computer says no.” Same with locals—some are super hands-on, others disappear when you need them most. It’s a bit of a crapshoot, but there are folks out there who’ll actually listen and get creative... just takes some digging (and maybe a little luck).
I hear you, but I’ve gotta say, I lean toward the smaller local lenders when I’m crunching numbers. Maybe it’s just my luck, but I’ve found they’re more willing to actually look at my spreadsheets and not just run everything through a formula. Had a big bank once that wouldn’t even consider rental income because it “wasn’t seasoned enough”—like, what does that even mean? At least with locals, I can usually get someone on the phone who’ll walk me through the weird stuff. Not saying it’s perfect, but for me, it’s been less of a headache... most of the time.
Had a big bank once that wouldn’t even consider rental income because it “wasn’t seasoned enough”—like, what does that even mean?
That “seasoned” thing drives me nuts too. I’ve had similar pushback from national lenders—if the lease isn’t 12 months old, they just ignore it. Local lenders do seem more flexible, but I’ve noticed their rates can be a bit higher. For me, it’s always a trade-off between personal attention and cost. I usually end up running the numbers both ways just to be sure I’m not missing something.
Yeah, the “seasoned” thing is such a moving target. I’ve had banks tell me six months is fine, then suddenly it’s a year, or they want to see tax returns with the rental income on it, which obviously isn’t possible if you just bought the place. It gets frustrating, especially when you know the tenant’s solid and paying on time.
I’ve leaned toward local lenders for smaller deals just because they’ll actually look at the lease and sometimes even talk to the tenant if needed. The rates are usually a bit higher, but I figure that’s just the price of flexibility. Sometimes I’ll take the hit on rate if it means closing faster or not jumping through endless hoops.
One thing I started doing is keeping super detailed records—bank statements showing rent deposits, signed leases, even screenshots of payments if needed. Some lenders will budge if you show enough proof, but yeah... it’s always a bit of a gamble. Just depends how much hassle you’re willing to put up with for a slightly better rate.
One thing I started doing is keeping super detailed records—bank statements showing rent deposits, signed leases, even screenshots of payments if needed.
I get the appeal of local lenders—yeah, they’ll look at your lease and maybe even chat with your tenant, but I’ve been burned by their “flexibility” turning into unpredictability. One time, a local bank changed their seasoning requirement mid-process and left me scrambling. National lenders might be more rigid, but at least you know what you’re getting most of the time. Sometimes paying a slightly lower rate isn’t worth the risk of a deal falling apart last minute. Just my two cents.