Portfolio/Commercial Loan Rates

[Mike McCarthy]

Having been through a handful of conventional mortgages for buy-and-hold properties, I'm exploring a commercial/portfolio loan for my next SFH purchase.

For small investors who have been through this, anything I should specifically prepare for? I have experience and good track record to show, and should have a good property to show.

What rates/costs should I expect?

And lastly, should I be working through a mortgage broker? Or just call a few local banks and talk through it?

[Will Gaston]

@Mike McCarthy I do all of my loans with commercial/portfolio lenders in Columbia, South Carolina. Here are some recent deals below in my market. My experience has been great with these types of lenders. So much easier than residential borrowing for a self-employed borrower. 

Arthur State; Quad; 4.0%, 5 year balloon, 20 year AM, 85% LTV, 630k loan closed in 1/21; .39 Fee, Cash out
Ameris: Duplex, 3.78%, 7 year balloon, 25 year AM, 76% LTV, 490k loan closed 2/21; .62 Fee, Cash out
Ameris: SFH, 3.78%, 7 year balloon, 25 year AM, 75% LTV, 245k loan closed 2/21; .62 Fee, Cash out,
Security Federal: Duplex, 4.125, 5 year balloon, 20 year AM, 69% LTV, 260k loan closed 9/20 .77 fee, Rate/term
First Reliance: Duplex/SFH, 3.75, 5 year balloon, 20 year AM, 80% LTV, 480k, loan closed 4/21; .50 Fee, Cash out