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RESIDENTIAL PORTFOLIO LOANS
PURPOSE
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
Recourse and Non-Recourse options available.
PREPAYMENT PENALTY
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.
LOAN LIMITS
Residential Portfolio Loans are available for 1st mortgages starting at $500k.
CLOSING
45 to 60 Days
RESERVES
6 to 9-months mortgage reserves are required.
NET WORTH
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 HYBRID
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
640+
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.
DOCUMENT REQUIREMENTS
- 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
GET STARTED
(857) 529-8555
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| Standard Portfolio Rental Loans | |
|---|---|
| Loan Purpose | Purchase or refinance a portfolio of rental properties Refinance and acquire properties under the same transaction |
| Borrower Type | Entity (Special Purpose Entity) Must be a Newly Formed LLC only, unless LLC was used exclusively for a previous loan transaction |
| Equity Pledge | Pledge of Equity from the owner is required |
| Interest Rate | Call for quote |
| Term | 5-, 7-, or 10-year with balloon due at end of term |
| Amortization | Full amortization up to 30 years, with interest-only option available |
| Minimum FICO | 660 (all Guarantors) |
| Maximum Loan-to-Value (LTV) | Up to 75% on purchase, limited cash-out refi, and cash-out refi3 |
| Loan Amount | $500K – $10MM |
| Property or Unit Acquisition Minimum | 5 units per loan |
| Experience | No first-time homebuyers |
| Foreign Nationals | Not allowed from ineligible country list LTV is limited to 65% |
| Property Type | Non-Owner Occupied: Single Family Residences (SFR) 2-4 unit residences Condominiums: warrantable and non-warrantable (with reduced leverage) Townhomes Planned Urban Developments (PUD) Multi-family, 5-20 units |
| Express Portfolio Rental Loans | |
|---|---|
| Loan Purpose | Purchase or refinance a portfolio of rental properties Refinance and acquire properties under the same transaction |
| Borrower Type | Entity (Single Purpose Entity, existing or newly formed) |
| Equity Pledge | No Equity Pledge required |
| Interest Rate | Call for quote |
| Term | 30-year fixed |
| Amortization | Full amortization |
| Minimum FICO | 640 (all Guarantors) |
| Maximum Loan-to-Value (LTV) | Up to 80% on purchase / limited cash-out refi, and 75% on cash-out refi |
| Loan Amount | $200K – $5MM ($100K minimum property value) |
| Property or Unit Acquisition Minimum | 2 units per loan |
| Experience | No first-time homebuyers |
| Foreign Nationals | Not allowed from ineligible country list LTV is limited to 70% on purchase/limited cash-out and 65% on cash-out |
| Property Type | Non-Owner Occupied: Single Family Residences (SFR) 2-4 unit residences Warrantable condos Non-warrantable condos (max 65% LTV) Townhomes Planned Urban Developments (PUD) Multi-family, 5-8 units |
GET STARTED
(857) 529-8555
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