I finally refinanced my rental property in Phoenix and it went sideways

I tried to refinance a duplex I own in Phoenix last month. The bank kept asking for all these extra docs because the property doesn't have a traditional lease. I rent it out month to month to a friend. They flagged it as some kind of complex income scenario. Then they hit me with a higher rate because it's not a standard owner occupied loan. I spent 6 weeks going back and forth with underwriting. Ended up walking away and using a local credit union instead. Has anyone else dealt with lenders not understanding non standard rental setups?

3 comments

3 Comments

kimr1021d ago

Laughing but only because I've been there. Banks act like a month to month rental to a buddy is some kind of underground criminal operation. You could try telling them it's a handshake deal with a cousin, they'd probably ask for a notarized affidavit from your third grade teacher. Credit unions usually have more common sense with this stuff.

caleb_ross1220d ago

Heard credit unions are way more chill about that stuff honestly.

butler.finley21d ago

Last time I tried that they made me get a landlord reference from someone who wasn't even alive lol.