Portfolio Loan Question pt 3

[Peyton LaBarbera]

Just clarifying some "final questions" I have about portfolio loans here

Firstly what types of loans can I include in this style of loan; dscr? conforming? fha? jumbo? If there are any others please list them

How do you go about transferring these properties into this portfolio? Do you refinance or do you do something else? If you are refinancing how does that process work?

Can I include all types of loans or does it not matter if when transferring the old loans they just convert to the portfolio loan terms?

Thank you to all who respond

[Bill B.]

Nope.

I guess a blanket loan (1 loan for multiple properties.) COULD be a portfolio loan (a loan kept “in house” and not sold on to the government or anyone else for that matter.) But it doesn’t have to be. And 99% or more of portfolio loans are for only 1 property.

If you want one loan for multiple properties you want a blanket loan. BUT, be careful. These are usually considered “commercial” loans. While they may be amortized over 20 or 30 years, they often come due every 5 years. At that 5 year mark they can renegotiate the terms or call the entire loan due, they do not have to extend the term beyond the original 5 years give or take. 

So imagine rates have dropped, or increased and they want double the interest, or they want their money back. Or the properties have dropped in value or increased a lot in value, so they want their money back or they want the properties. You need to have a plan in place to refinance them before the deadline to avoid the possibility of losing the properties.