Portfolio Residential Loans

[Rob B.]

How does financing work on residential portfolios? I'm looking at a portfolio of houses (9) in the Central Valley, but I'm wondering how financing for a portfolio of SFRs works. Is it a series of residential loans or one blanket mortgage or is it a commercial loan? 

Also, how much would I expect to need to put down? 

[Peter K.]

Hello @Ramon Jenkins   Good question.  Wholesale lenders or standard lenders with a wholesale department typically give discounted rates through Mortgage Brokers since we are bringing the client and handling the loan processing for them. 

It is why often times why a good mortgage broker can be very competitive to direct lending quotes (often times even more attractive) and make the client's life easier by being able to shop many sources for them and have multiple back up sources, should the loan get rejected by the lender's underwriting dept.   

Because we already have a complete loan package put together, you often won't have to start from scratch with each lender...filling out multiple applications, resending finacials, taxes, etc.  

Having said all of the above its still a good idea to get at least one quote from a direct source to compare.  Especially if you have a banking relationship with that source.  Some institutions will be quite competitive and a little more flexible to their existing clients.