Can Someone Explain Portfolio Loans To Me & Help W/ My Situation

[Danny N.]

I introduced myself last night on another thread and I basically found this site while searching for best ways to utilize my equites and cash to acquire more properties since interest rates are so cheap right now and someone sent me a message about using my investment properties, not my main residence to be rolled up into a portfolio loan. I've never heard of the loan and I bank with chase but would like to discuss such a product with them bc I can't really borrow more based on income bc my income is only $15,000/mo and I have half my taxable income in play on a mortgage on my main residence and a 2nd home my son lives in.

My assets 

Main Residence - $1.4M value paid $450k in 1996, $235k mortgage today

Vacation Home - $700k value paid $450k in 2012, $240k mortgage today

Rental Home - $65k value, paid off $900/mo rent

Rental Home - $50k value, paid off $600/mo rent

Rental Home - $65k value, paid off $700/mo rent

Empty Residential Lot - $300k value, paid off

Cash available - $400-500k

Net worth - $2.5M give or take but I've always struggled getting loans from the bank and its always been such a hassle so I'd like to know what my best option is to buy 1 or more properties and what I realistically could acquire at this point. Also the reason I ask is this, the vacation home my son is in, technically isnt a rental bc I dont think the mortgage allowed that, but he's living in it and paying all expenses mortgage,tax,maintenance so it really doesn't cost me anything. So really I'd like to tap the equity in my vacation home of $400k+, my $300k land thats paid off, and the $170k in rental properties thats paid off.

Thank you for any help you can offer, banks are so intimidating I hate going in and discussing these things.

[Scot Howat]

A portfolio loan (or portfolio lender) is a mortgage that is not sold to the secondary market.  Which basically means that the bank that does a mortgage for you will actually keep the loan and service the payments you make.  Most banks don't do that (Bank of America, Wells Fargo, Chase etc...). 

The best place to find a portfolio lender are small community banks and credit unions in your area.  Just call them up and ask to speak with someone in their loan department, then ask if they sell off their mortgages to Fannie Mae or Freddie Mac, or if they hold on to them.  It shouldn't be too hard to find a couple of them in your area.