Rental Property Investor · Saint Charles, IL · Member since 2014 · 304 posts · 222 votes
11y
Credit unions or portfolio lenders typically will lend 65-70% ltv as long as dcr (debt coverage ratio) is 1.20-1.25 or greater. Blanket loans can be helpful as you only have one payment for all of the properties, however if you choose to sell a property, then you need to replace it with an identical property, which is almost impossible, or go thru the underwriting process all over again. Rates between 4.5-7% with 3,5,10 year balloons with amortizations of 20-25 years. Hope this helps.
Credit unions or portfolio lenders typically will lend 65-70% ltv as long as dcr (debt coverage ratio) is 1.20-1.25 or greater. Blanket loans can be helpful as you only have one payment for all of the properties, however if you choose to sell a property, then you need to replace it with an identical property, which is almost impossible, or go thru the underwriting process all over again. Rates between 4.5-7% with 3,5,10 year balloons with amortizations of 20-25 years. Hope this helps.
Great info. I was under the impression that they will lend 50% LTV...60+% would be awesome.
Metro Detroit, MI · Member since 2012 · 120 posts · 15 votes
11y
Can you get credit union/portfolio loans on property you have a land contract on with a good amount of equity? Say for example I owe 60k but the property is worth 160k.
Rental Property Investor · Saint Charles, IL · Member since 2014 · 304 posts · 222 votes
11y
I have never encountered that before but looks like LTV there and if DCR is 1.20 > I would say you have a chance. Each portfolio lender is different so I would advise you to start calling smaller banks and credit unions in the areas near your rental/s. Ask to speak with the VP of commercial lending about refinancing your "investment properties," possibly with a blanket loan, and ask him about their requirements.
Good questions to ask....
Do you have any geographic restrictions?
Do you have minimum net worth or income requirements? Property ideally should qualify itself without you having to use your income.
LTV and DCR requirements?
Do they require refi in the name of a corporate entity such as an LLC, most likely they will.
Rates, loan term (typically 20-25 years) prepay etc.
Does loan show up on personal credit report?
Do they have property seasoning requirements?
Is this a recourse or non recourse loan?
That's a good start so keep us posted, especially about what you discover with land contract scenario.