Portfolio Loan ..... And the " Normal " stipulations that

[Michael Dunn]

come with them

So I spent the good part of 2 hours, browsing and reading through a good bit of Information regarding Portfolio .... Loans, Lenders, and the stipulations that typically come with this type of loan

Here is what I gathered from my time spent reading on the subject today , and just want to please get clarification and any advice others can shed on the subject

Portfolio Loans:

1. You still have to put at minimum ... 20% down on the property ( some Lenders may even require 25% down ) ?

2.  There is NO Seasoning Period with them .... You can technically do a Cash-Out refi. almost immediately

3. If there is NO Seasoning Period required ..... What then is the

Cash-Out refi. based on ...... Is it on the ARV of the Property? Or is it based on the Purchase price + the total costs of the Repairs? It seems that if it is NOT based off of the ARV, than There will be virtually NO money to get out from the refi. , to use for the Down Payment on your next property ( using the BRRR strategy

4. Is Delayed Financing , another way of saying there is No Seasoning required ?

5. With a Portfolio Loan, you have to Pay for Points upfront ( usually 1 - 2 )  Costs will be around $1,500 per Point .... But you can Roll this costs into the Loan itself ?

6. You will pay a Higher Interest Rate .... Likely 1 - 1.5% higher ?

7. You HAVE TO do a 5 -7 year ARM ( no 15 or 30 year ) correct ? And do you just Refinance the 5 or 7 year ARM into a 15 or 30 year conventional come the time that the 5 or 7 year ARM is up ?

Thanks so much for the help

[Brie Schmidt]

Originally posted by @Michael Dunn:

come with them

So I spent the good part of 2 hours, browsing and reading through a good bit of Information regarding Portfolio .... Loans, Lenders, and the stipulations that typically come with this type of loan

Here is what I gathered from my time spent reading on the subject today , and just want to please get clarification and any advice others can shed on the subject

Portfolio Loans:

1. You still have to put at minimum ... 20% down on the property ( some Lenders may even require 25% down ) ?

2.  There is NO Seasoning Period with them .... You can technically do a Cash-Out refi. almost immediately

3. If there is NO Seasoning Period required ..... What then is the

Cash-Out refi. based on ...... Is it on the ARV of the Property? Or is it based on the Purchase price + the total costs of the Repairs? It seems that if it is NOT based off of the ARV, than There will be virtually NO money to get out from the refi. , to use for the Down Payment on your next property ( using the BRRR strategy

4. Is Delayed Financing , another way of saying there is No Seasoning required ?

5. With a Portfolio Loan, you have to Pay for Points upfront ( usually 1 - 2 )  Costs will be around $1,500 per Point .... But you can Roll this costs into the Loan itself ?

6. You will pay a Higher Interest Rate .... Likely 1 - 1.5% higher ?

7. You HAVE TO do a 5 -7 year ARM ( no 15 or 30 year ) correct ? And do you just Refinance the 5 or 7 year ARM into a 15 or 30 year conventional come the time that the 5 or 7 year ARM is up ?

Thanks so much for the help

 A portfolio loan is a loan that the bank keeps on the books.  Most loans are done by the bank, but then sold on the secondary market.  For them to do this they have to conform to a set of rules, and are called conforming loans.

With a portfolio loan, there are no rules.  The bank can do whatever they want because it is their own money and they don't have to answer to anyone.  Each bank has their own set of rules on what they will or will not do.  

In my experience, a very small percentage of banks actually do portfolio loans