Packaging all my SFM mortgages into one loan

[Dallin D. Hutchinson]

Newbie Zone Question!  Hi, I have three single family homes all under conventional mortgages between 4.5% and 4.875%.  They are all with the same lender (SWBC).  Is there any way to bundle all these together and get a better rate?  Thoughts?

[Kerry Baird]

Agree with others that conventional mortgages typically have the lowest rates.  I had a similar portfolio, with 7 SFRs. I refinanced them individually with a similar conventional mortgage product, to get equity out. 

Mortgages 1 to 4 have best rate and down payment and interest rate, while 5,6,7,8,9 and 10 have higher down payment and higher interest rates, plus reserves (PITI and HOA for six months, for each property) requirements.

To go forward, or scale your portfolio: 

My usual lender calls the conventional mortgages “golden tickets” and there are only 10 of them, per Fannie and Freddie (the government agencies that guarantee the loans). 

Once you get ten mortgages, a possible path forward is aggregate those...see Corevest aggregate product. Commercial products like this aggregate loan, often (always?) require a purposeful creation of a corporate entity for ownership.  Again, rates are higher, loan to value is often lower than the conventional loans that you already have...and it is the cost of doing business. 

Moving them over to the commercial side, frees you up to buy 10 more in your personal name with conventional  “golden tickets.”  

Other options might be commercial lending, local credit unions or community banks, or private lending.