I'm interested in portfolio lending

[Seth Johnson]

I have maxed out my 10 fannie mae loans and am curious to hear input on porfolio loans. I have 4 quadplexes that currently have traditional fannie mae loans, that I am interested in grouping into a portfolio loan. I have no intention or need to sell any of these properties in the next 10+ years, so grouping them and losing some possible liquidity is not an issue. The current combined debt on the 4 quadplexes is 350K. The combined value of the properties is approximately 1.3 million. This would be about a 27% LTV. I'm not really interested in taking any cash out, I just want to free up the 4 loans on my balance sheet.

What terms should I expect to receive if I go the portfolio route (interest rate? amort schedule? closing costs? etc? )  

What experiences have you guys had both good and bad, working with portfolio loans?  

Love to hear any feedback or suggestions that you have.  

[Bob Okenwa]

@Seth Johnson

Correct me if I am wrong, but it sounds like you're looking for a blanket mortgage. A portfolio loan is simply a loan that a lender keeps on it's books (aka in its portfolio) and does not sell to Fannie Mae. These kinds of loans do not have to follow Fannie Mae's rules so the lender can be a little more flexible in the terms.

Blanket loans are when you combine multiple loans into a single loan that covers multiple properties. You can find blanket loans from portfolio lenders as well as commercial banks. The rates and terms will vary by lender, so it may be in your best interests to call a few local banks or credit unions and ask about their products, and compare that with what you may receive from larger lenders.