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7 Best Banks for Real Estate Investors Compared

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Best Banks for Real Estate Investors Compared

Real Estate Bees’ editorial team asked a number of industry-leading real estate investors to share their expertise on the best banks for real estate investing business to help our readers make a more informed decision when choosing a bank for their needs.

With the help of the experts, we identified the best banks for real estate investing business and evaluated them based on critical factors that are important for real estate investors. We never receive any compensation for the inclusion of products or services in our articles. Read our editorial guidelines to learn more about our review and rating process.

— Kimberly Anderson, Senior Creative Editor at Real Estate Bees

In this article, we’ll look at 7 of the best banks for real estate investors, assessing them based on 3 criteria:

  • Fees and terms
  • Convenience
  • Investor-friendliness

Read below to choose the best bank for your real estate investing business to open an account at.

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Experts' Choice Breakdown for the Banks They Use

What bank do you use for your real estate investing business?

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1. Bank of America - Best for Home Equity Loans

Bank of America

VISIT WEBSITE

Having acquired Merrill Lynch during the financial crisis, Bank of America is the world’s largest wealth management firm with $1.35 trillion in assets managed in the US as of 2020.

In housing, the bank holds the second place overall for retail mortgage origination volume. Bank of America also ranks as the No. 1 home equity lender in the US.

Over the past few years, Bank of America has led in the adoption of digital banking technologies.

One of its wealth management divisions, Merryll Lynch Wealth Management, was recognized in 2021 for “Best Use of Technology in Wealth Management”.

Bank of America’s Private Bank was also named the best private bank in the US.

The company prides itself on providing convenience for its 66 million consumer and business clients, making it one of the best banks for real estate investors.

 

Fees and Terms

Real estate investors who want to take advantage of Bank of America’s investment real estate loans must meet the following criteria:

  1. Minimum 2 years in business under existing ownership
  2. Minimum $250,000 in annual revenue
  3. Minimum credit score: 640
  4. Minimum down payment: 25%

Monthly fees for account opening: Business Advantage Fundamentals Banking customers pay a $16 monthly fee. This can be waived if the customer:

  1. Maintains a combined $5,000 monthly balance
  2. Makes new net qualified purchases of at least $250 using the Bank of America business debit card
  3. Becomes a Preferred Rewards for Business member

Business Advantage Relationship Banking customers pay $29.95 monthly. This can be waived if the customer:

  1. Becomes a Preferred Rewards for Business member
  2. Keeps a $15,000 average monthly balance

Overdraft fee: $35 (dropped to $10)

Loan origination fee: Origination fees range from 0.5% to 1% of the loan amount

 

Convenience

With Bank of America, you can apply online for both prequalification and preapproval. The bank has about 4,200 branches across the US and about 16,000 ATMs.

You can reach customer service by email, online, or by phone.

You can do a lot of things on the Bank of America app: learn about loan options, get prequalified, set up loan auto-payments, lock in a purchase, or refinance a loan.

Bank of America has all the business account services you could need, and it’s easy to move large amounts of money.

Erin Helle, BC Global Investments, LLC, Owner and CEO

 

Investor-Friendliness

Bank of America investment property loans cater primarily to high net worth clients looking to diversify their portfolios. As such, they offer customized lending solutions based on an investor’s unique needs.

Additional credit and legal approvals may be required for customized lending solutions.

The bank offers financing for a variety of investment real estate, including:

  1. Apartments (non-owner occupied)
  2. Owner-occupied commercial real estate
  3. Farm, ranch, and timberland
  4. Retail centers
  5. Office buildings
  6. Industrial properties

Aside from conventional loans, you can apply for a HELOC (home equity line of credit) that allows you to borrow against your home’s available equity.

Real estate investors can also use an SBA 504 (suitable for commercial real estate loans of $350,000+).

Minimum approved loan amount is $100,000 for convention loans and the maximum is $5 million. The loan term is typically up to 10 years with balloon payment and 15 years with full amortization.

I use a Bank of America Business Account! I love it and have never had an issue with them.

— Liz Klingseisen, Real Estate Investing Women (REIW), Co-Founder
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2. JPMorgan Chase Bank - Best for Expedited Mortgages

JPMorgan Chase

VISIT WEBSITE

JPMorgan Chase has managed to successfully merge commercial banking with investment banking.

Just like Bank of America, they employ some of the most advanced tech in mobile banking and finance.

Among the elite banks, JPMorgan Chase is the most trusted among consumers, with presence in every major city in the US.

With a total asset of $3.213 trillion, the bank ranks as the largest bank in the US according to S&P Global. It’s also the 5th largest bank in the world.

 

Fees and Terms

Investors need to have:

  • 25% down payment
  • 640 credit score

There is a monthly fee of $15. It’s waived if you:

  1. Maintain a minimum daily balance of $2,000
  2. Use your Chase Ink® Business Card to make at least $2,000 in purchases – excluding returns or refunds
  3. At least one business day prior to the last day of your bank account statement period, you deposit $2,000 into your Chase checking account from QuickAcceptSM transactions and/or other eligible Chase Merchant Services transactions
  4. Maintain an account linked to Chase Private Client Checking account

Overdraft fee: $34

Loan origination fee: Typically 1% of the loan amount

 

Convenience

Chase Bank promises to help mortgagers close deals within 3 weeks or refund them $2,500. Typically, deals close in 45 days or less with Chase.

This makes them one of the favorite banks for real estate investors who want expedited closings.

Chase serves almost half of American households. They have 5,300 branches and almost 16,000 ATMs nationwide. You can view Chase investment property mortgage rates for your ZIP code online.

 

Investor-Friendliness

Chase is the nation’s No. 1 multifamily lender, offering loans from $500,000 to $25 million for the purchase or refinance of rent-stabilized apartments with 5+ units.

They also offer $1 million to $15 million in loans for the purchase and refinance of commercial spaces – industrial, office, retail.

Investors can tap into a HELOC, apply for Small Business Administration (SBA) loans, or get conventional loans for both owner-occupied and non-owner-occupied properties.

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3. Wells Fargo - Best for SBA 504 loans

Wells Fargo

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Wells Fargo ranks third among the top five US banks, ranking below JPMorgan Chase and Bank of America. It has over $1.97 trillion in assets.

Currently, the bank serves more than 70 million customers across the country and employs more than 266,000 people.

Employees work in three main divisions – Wells Fargo Wealth Management, Wholesale Banking, and Community Banking.

Since 2016, however, the bank has had to fire about 5,300 employees for creating fake accounts. As a result of shady behavior, the bank had to face lawsuits and media scrutiny.

They lost hundreds of billions of dollars in stock market value when the Federal Reserve imposed a cap on Wells Fargo’s $1.95 trillion asset valuation due to “widespread consumer abuses”.

Looking past the customer service issues, Wells Fargo offers some of the best banking fees and terms.

 

Fees and Terms

Investors need to have:

  • 25% down payment
  • 640 credit score

Conditional approval requires a deposit of up to $1,000. If the loan transaction does not close for any reason, the deposit is nonrefundable.

If the loan transaction closes, the deposit will be applied to any applicable fees due at closing. If any portion of the deposit is not used, it will be returned or credited to the investor after closing.

Monthly fee: $10, unless you maintain a minimum daily balance of $500

Overdraft fee: $35 per item

Loan origination fee: None

 

Convenience

Wells Fargo has 8,050 branches in the US and 13,000 ATMs. It offers no origination or appraisal fees which helps you save money on financing costs.

There are also professionals who specialize in each property type to assist with finding the right financing for you. Investors can get up to $1 million in financing.

 

Investor-Friendliness

Wells Fargo offers a wide range of financing options to investors: balance sheet lending, commercial mortgage-backed securities, agency and FHA lending, community lending, and investment.

Commercial investors can also get commercial mortgage servicing, community development loans, new markets tax credits, commercial real estate equity loans, and commercial real estate line of credit.

Wells Fargo is a leader in affordable housing financing. They are the No. 1 affordable housing lender in the US and the No. 1 commercial real estate lender in the US since 2009.

Wells Fargo was ranked the top SBA 504 lender in 2018.

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4. U.S. Bancorp - Best for Short-Term Financing

US Bancorp

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U.S. Bank prides itself on making ethical decisions. They’ve been repeatedly named one of the world’s most ethical companies by Ethisphere.

For those looking for short-term financing options, U.S. Bank offers investment property loans with terms as short as five years.

Short-term loans usually come with lower interest rates but higher monthly payments. The advantage here is that paying off short-term loans as quickly as possible increases cash flow.

U.S. Bank offers flexible terms on short-term, long-term, and asset-based loans.

Asset-based loans consider the value of your business assets rather than looking at your cash flow. In this case, business assets are used as collateral for securing the loan.

You can combine ABLs with term loans or a line of credit.

 

Fees and Terms

Investors need to have:

  • 25% down payment
  • 640 credit score

Loan terms are for 5, 10, and 15 years with amortization of up to 25 years.

Monthly fee: None

Overdraft fee: $36 per item

Loan origination fee: The origination fee charged by U.S. Bancorp varies by state. An application fee of $395 is charged, but it is refunded as credit once you close.

 

Convenience

U.S. Bank has an edge over other major lenders in the Midwest, where it has a stronger physical presence than Chase and PNC. It has over 2,400 branches and 4,200 ATMs nationwide.

Although its branch network is smaller than other major banks, U.S. Bank’s digital banking has improved in recent years.

You can begin a mortgage application online, save it and come back to it later. You can also upload documents securely.

 

Investor-Friendliness

U.S. Bank provides SBA loans, HELOCs, asset-based loans, and conventional financing (short term and long term) to investors.

Investors will find the bank appealing since it charges no monthly fees. Financing options are available for a variety of property types, including multifamily and mixed-use properties.

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5. Capital One - Best for Investors with 200+ Monthly Transactions

Capital One

VISIT WEBSITE

Capital One started out as a credit card company in 1994 before expanding into loans and retail banking. Currently, credit cards still make up the bulk of the bank’s revenues.

Even though it has fewer branches than the major banks, it competes via solid marketing strategies and offerings.

For example, Capital One is one of the few banks that offers unlimited free transactions on its checking accounts.

This makes it ideal for investors who need to make more than 200 transactions every month. Capital One also offers a range of tailored commercial real estate lending solutions.

Also, customers earn up to 0.40% interest on the bank’s flagship 360 savings account, compared to many other big banks that do not offer any interest on savings accounts.

As part of a broader plan to enhance its presence, Capital One acquired a series of financial companies, including Hibernia National Bank, North Fork Bank, Netspend, and Chevy Chase Bank, in order to secure its place among the top 15 banks in the US.

 

Fees and Terms

Investors need to have:

  • 25% down payment
  • 640 credit score

Monthly fee: $15. The fee is waived if you maintain a $2,000 average 30- or 90-day balance or have two other Capital One accounts

Overdraft fee: None

Loan origination fee: Can be up to 1% of the loan amount, depending on your state

 

Convenience

Capital One has a solid online presence. Customers can easily manage their accounts online. However, it has only 400 branches in nine states.

 

Investor-Friendliness

Investors who make a large number of transactions each month have nothing to worry about with Capital One’s business checking accounts. The bank also offers generous rewards on their credit cards.

Capital One is among FHA, Fannie Mae, and Freddie Mac approved mortgage lenders. This allows them to offer customized solutions for investors at any level.

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6. Citibank - Best for Commercial Real Estate Investing

CitiBank

VISIT WEBSITE

Like Capital One, Citibank offers even higher interest rates on its Accelerate Savings account. Citibank places a strong emphasis on streamlining international banking, unlike the major banks that focus on wealth management

More than half of Citibank’s deposits are held in offices outside of the United States.

The bank has a global banking presence, which is beneficial to investors seeking to buy second homes abroad. Citibank also offers bigger loan amounts for commercial real estate investors.

 

Fees and Terms

  • 25% down payment
  • 640 credit score

Monthly fee: Depending on your account package, Citibank charges between $0 to $30 monthly. Customers can open a Citibank checking account by choosing one of these packages.

  • Citigold – None (But you must maintain a $200,000 average monthly balance in eligible linked deposit, retirement, or investment Citibank accounts)
  • Citi Priority – $30 (You pay nothing if you maintain a $50,000 average monthly balance in eligible linked Citibank accounts)
  • The Citibank Account package – $25 (Waived if you maintain $10,000 in eligible linked deposit, retirement, or investment Citibank accounts)
  • Basic Banking – $12. This fee can be waived if you:
    1. Maintain a combined balance of $1,500 in your Citibank accounts
    2. Make one direct deposit and one bill payment per statement period
  • Access account – $10. This fee can be waived if you:
    1. Maintain a combined balance of $1,500 in your Citibank accounts
    2. Make one direct deposit or one bill payment per statement period

Overdraft fee: $34

Loan origination fee: Borrowers pay a $100 application fee. Origination fee varies by state.

 

Convenience

It’s easy to reach Citibank’s customer care reps via phone. However, loan applications can’t be completed online.

You can start the application process online but would need assistance from a representative to complete your application. Citibank also offers some of the most competitive mortgage rates.

 

Investor-Friendliness

According to their website, Citi finances assets from $10 million to $100 million+, delivering highly customized solutions to big-time real estate investors.

Their lending portfolio includes office buildings, multifamily properties, warehouses, mixed-use or flexspace, retail centers, and distribution facilities.

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7. PNC Bank - Best for HUD/FHA Loans

PNC Bank

VISIT WEBSITE

PNC Bank is famous for offering bundled checking and savings accounts called “virtual wallets”. They offer a suite of lending products for commercial real estate clients. These include:

  • Acquisition, construction, and permanent loans for public and private developers and investors
  • Debt and equity loans for affordable housing investors
  • Agency financing for multifamily and seniors housing
  • Third-party loan servicing

 

Fees and Terms

For its mortgage products, PNC does not publish minimum credit score requirements. The lender may consider a nontraditional credit history, such as rent payment history.

However, investors should be prepared to pay a 25% down payment. Investors in owner-occupied housing may be able to get HUD/FHA loans that require much lower down payments.

Monthly fee: $15. This fee can be waived if you:

  1. Maintain a $500 average balance
  2. Receive $500 in direct deposit during the statement period
  3. Are older than 62.

Overdraft fee: $36

Loan origination fee: None

 

Convenience

PNC offers customers the ability to apply for and track mortgage applications online. The bank also posts mortgage rates on its website. However, in-person service is not available in every state.

By simply opening a PNC Virtual Wallet, customers can earn a $50 reward. First-time buyers can qualify for a $5,000 grant to be applied towards closing costs.

 

Investor-Friendliness

PNC provides term financing, bridge loans, HELOCs, and FHA loans to real estate investors and property developers.

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Which Bank Is the Best for Rental Property?

This article has shown you 7 of the top real estate investor-friendly banks in the US. Yet, your investing strategy should dictate your choice of bank.

It doesn’t matter too much which bank you use. The more important thing is you make connections with real estate lenders and mortgage advisors.

This is because your name brand banks like Chase, Wells Fargo etc.. require a lot of qualifications to get a loan, whereas a lot of banks that are specific for mortgages offer much better products.

— Lewis Fisk, Drive By Home Buyers, Founder

Do you have a large property portfolio and need to make a large number of transactions every month? Then opt for Capital One. If you need bigger loans, you might be better off with a bank like Citibank.

Considering all the factors, we believe JPMorgan Chase is the best bank for real estate investing.

This is because the bank offers fast closings, great customer care, and a suite of financing options for real estate investors.