Portfolio Loan possible?

[Marc S.]

Hello,

I am currently in the process of putting an offer in on a SFR in Celina, TX. Are there any banks out there I can get a portfolio loan on to negotiate a better rate than going through a bank using Fanny / Freddy?

[Doug Smith]

Will this be owner occupied or investment? Fannie/Freddie will usually have a better rate than a portfolio bank loan. Fannie/Freddie Lenders watch the 10-year Treasury...which yesterday hit its highest mark in more than a decade, but the Federal Reserve has jacked up the Fed Funds rate in the past few months faster than banks "stress test" for. Banks already are not build for real estate investors, but right now they are running from them...and some even from loans all together. Banks are designed to boost local business lending, but they are not build for longer-term holds of more than 5 years. That is why Fannie and Freddie where created...to provide liquidity and stability to the housing market. Even with much higher rates, unless there is something I don't know about your situation, you're still likely to have more success with Fannie/Freddie...or even a non-QM loan, than you are with a bank portfolio type of loan. Let me know if you have any more specific questions. I'm happy to answer them. 

[Doug Smith]

Will this be owner occupied or investment? Fannie/Freddie will usually have a better rate than a portfolio bank loan. Fannie/Freddie Lenders watch the 10-year Treasury...which yesterday hit its highest mark in more than a decade, but the Federal Reserve has jacked up the Fed Funds rate in the past few months faster than banks "stress test" for. Banks already are not build for real estate investors, but right now they are running from them...and some even from loans all together. Banks are designed to boost local business lending, but they are not build for longer-term holds of more than 5 years. That is why Fannie and Freddie where created...to provide liquidity and stability to the housing market. Even with much higher rates, unless there is something I don't know about your situation, you're still likely to have more success with Fannie/Freddie...or even a non-QM loan, than you are with a bank portfolio type of loan. Let me know if you have any more specific questions. I'm happy to answer them. 

[Andrea Lane]

There are many lenders who will do portfolio loans, and banks are not usually our first choice.  You usually pay a higher rate, not lower than a bank (the rate may depend on your experience).  

If you have never done a portfolio loan before, be aware that you will find a lender for the package, but there is usually a hefty price if you decided one of the units is underperforming and you want to sell it separately from the portfolio.

[Dennis Muno]

Quote from @Marc S.:

Hello,

I am currently in the process of putting an offer in on a SFR in Celina, TX. Are there any banks out there I can get a portfolio loan on to negotiate a better rate than going through a bank using Fanny / Freddy?

 Depends on the lender and also the loan amounts, location of ppts, etc, if a portfolio loan will be possible

[Brayden Hrycko]

Hey @Marc S.,

Sounds like this will be a rental. If you don't want to use your income to qualify, you'd be looking at DSCR options. Feel free to reach out.

[Brittany Minocchi]

It sounds like you're using the term portfolio to mean a loan a bank retains, not as in financing multiple properties under one loan...is that correct? Have you already been quoted a rate you're not happy with? You may not need a portfolio loan to get a more competitive rate. Happy to take a look at your numbers and discuss if you'd like to connect. 

[Marc S.]

Quote from @Brittany Minocchi:

It sounds like you're using the term portfolio to mean a loan a bank retains, not as in financing multiple properties under one loan...is that correct? Have you already been quoted a rate you're not happy with? You may not need a portfolio loan to get a more competitive rate. Happy to take a look at your numbers and discuss if you'd like to connect. 

 Thank you Brittany.  Are you available to speak this week?