Are there still licensed portfolio lenders in FL that are experts in the residential multifamily zoned property space? What I mean by that is someone who can do: -low down (<5%) -low interest, 30 yr fixed -no MI (ideally, spends on rate) -loan size $300-550k -not FHA! Nonconventional lending. -owner occupant, 2-4 unit multifamily zoned Just want to see if my expectations are realistic or not. Do they exist?? I have come into contact with 1 or 2 in other states but it seems less prominent here in FL? Let me know what your thoughts are on this 🤷🏽♂️

Lets see if I can take a crack at this? A portfolio lender is a lender that holds their own loans and does not sell them off to the secondary market. Because they hold their own loans, they can make their own rules on those loans. They can follow Fannie/Freddie, FHA, VA, USDA guidelines while making their own guidelines different from those mentioned before. They can do this, again because they won't be selling these loan off to the secondary market. To get a sub 5% down payment is not possible unless you use one of these programs. Fannie Mae Home Ready (income limits) Freddie Mac Home Possible (Income Limits), FHA, VA, USDA, and the various DPA or Down Payment Assistance programs, however the DPA's will not allow you to buy a 2-4 unit and USDA will not as well. Fannie and Freddie have higher down payment requirements on 2-4 units as well. You can get low fixed rates on any of these programs. There are no programs sub 5% down payment that don't have MI of some kind. Technically VA doesn't have MI, but it has a funding fee unless you are exempt due to a disability, or if you are a surviving spouse of a service member that died in service, you are exempt of the funding fee. All other loan programs have an MI component. The loans that don't have MI are Non-QM loans and the typically the lowest down payment on those loans is 10%. There are several that are designed for owner occupancy, but the majority are designed for Non-Owner occupancy. I'm not sure why anyone would not use either FHA or VA to buy a 1-4 unit. FHA is 3.5% down payment and if a 3-4 unit has a self sufficiency test. The VA is 100% financing on 1-4 units. There are no better, low down payment options than these 2 programs for 2-4 unit properties. I hope this helps?

@Kevin Romines You've taught me more in that 2 min read than I've learned speaking to at least 20 different lenders. Thank you very much, I recognize an expert when I see it 👍🏼

Portfolio Lenders still exist?Portfolio Lenders still exist?

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Caroline Gerardo

Lender
Laguna Niguel, CA

Caroline Gerardo

Lender
Laguna Niguel, CA

Replied January 14, 2022 07:43

5% down is government loans- Fannie, Freddie, FHA (conventional)

There are MANY non conforming lenders who will do 10% down no MI if you can prove your income with either bank deposits; or debt service ratio (this is non owner) ; or asset depletion with good credit but doesn't have to be perfect. Generally they want loans larger than $300000 and are picky about subject location. All lenders need state licensing and that is one layer of who what where.

"Portfolio lender" is a misnomer, does not mean anything in the mortgage lender world.

Every deal is case by case- subject to the borrower/ the property/ the time frame as some of these lenders are in and out of the market/ down payment

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