Residential Portfolio Loan
Our Residential Portfolio Loans are designed to help rental property investors purchase and refinance 5 or more properties with a single loan, unlock equity, and get cash out of their existing rental investments. This loan is designed to consolidate multiple rental property mortgages into a single loan so you can continue to grow your portfolio. Minimum two properties per loan for Express product financing.
Non-Conforming FLEX and Conforming Portfolio Loans are recommended for borrowers intending to hold a portfolio of 5 or more properties for 5 or more years before selling or refinancing. This is a single loan collateralized across multiple residential 1-4 unit and/or multifamily 5+ unit properties. Income producing properties must be performing at a DSCR of 1.0x or more. Minimum two properties per loan for Express product financing.
Recourse and Non-Recourse options available.
All Residential Portfolio Loans have a prepayment penalty, usually through the first 5-years of the loan. Step-down and yield maintenance prepayment options are available.
Residential Portfolio Loans are available for 1st mortgages starting at $500k.
45 to 60 Days
6 to 9-months mortgage reserves are required.
A strong schedule of real estate owned is important but not required.
LOAN TERMS & AMORTIZATION
1-4 Unit & Multifamily Portfolios: 5 to 30-year fixed terms. 15 and 30-year amortization.
FULL-TERM, BALLOON, AND HYRBID
Loans can be structured as full-term, balloon, and hybrid. Full-term loans amortize over the life of the loan, and are paid in full upon loan maturity. Balloon mortgages are fixed-rate loans with a balloon payment due at the end of the initial term. Hybrid loans have a fixed-rate for the initial fixed term, then adjust annually or semi-annually through the remaining loan term. For example, a 5-year fixed hybrid mortgage is fixed for the initial 5-years, then adjusts annually or semiannually through the remaining 30-years. A 5-year fixed balloon mortgage is fixed for the initial 5-years, with the loan balance due in full at the end of the 5-year period. A 30-year fixed mortgage is fixed for the entire 30-years, paid in full at loan maturity.
Full-Term: Higher rate providing the most security. Loan is fixed for the entire loan term.
Balloon: Lower rate than a full-term loan. Property must be refinanced or sold by the end of the term.
Hybrid: Lower rate than a full-term loan. Borrower has the benefit of a low fixed-rate loan during the initial term, can ride the adjusting rate after the initial fixed-term through loan maturity, or sell/refinance.
CREDIT SCORE REQUIREMENTS
OPERATING INCOME - SEASONING
Approval and interest rates are primarily based upon the net operating income of the property and LTV. The property must show it has been operating at a net operating income over the last 3-months to support the DSCR at the proposed market interest rate.
- FULL or LITE-DOC UNDERWRITING
- Rent Roll
- P&L / Last 12 to 24-months
- Borrower 1003 or Personal Financial Statement
- Schedule Real Estate Owned
- Bank Statement(s) Verifying Down Payment/Reserves
- Minimum 3 Quality Property Photos
- No tax return options available
Key Portfolio Rental Loan Product Facts:
- Commercial loan underwritten on property cash flow
- No personal income verification
- Looking to Refinance an existing Portfolio loan?
- No limit to the number of properties that can be financed
- Designed for buy-and-hold investors