Community Banks or Other Sources

Private Lending & Conventional Mortgage Advice

Community Banks or Other Sources

Frankfort, IL · Member since 2022 · 204 posts · 132 votes

Good Afternoon!

I am looking for a community bank or other institution that that provides mortgages or loans. I often hear about banks that will do things like provide a portfolio loan or line of credit based on your equity across more than one property, lend under terms more like business loans for rehabs/brrrs, etc. I haven't been able to locate one however. If you do this kind of lending in southern Cook (Chicagoland) or Will county Illinois, please let me know. If you have worked with these sorts of institutions, and have recommendations or advice to share, I would love to hear more. Everything I've found is more like dscr or hard money related.

Thank you in advance for your help!

Dave

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Tom S.

Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes

2mo

@Dave Kush I had good luck working with small local banks for many years in VT, where you got to know the loan officer and they knew the property you were looking to get a loan on.

Commercial lending department, and yes, I was able to get a blanket portfolio loan across a few properties and it was classified as a business loan secured by real estate. Also products like purchase + rehab financing that simply converted to a regular mortgage when complete (no need to refinance after the rehab, and no paying a second set of closing costs).

A good tip was to have the rental income deposited with the same bank, so when applying for the next loan, they already had the numbers which really streamlined the process.

Good luck for the search in your area and hopefully you can find something!

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Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
2mo
Wish you success!
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Vijay FriedmanBusiness Member
Miami, FL · Member since 2026 · 766 posts · 122 votes
2mo
Quote from @Dave Kush:

Good Afternoon!
I am looking for a community bank or other institution that that provides mortgages or loans. I often hear about banks that will do things like provide a portfolio loan or line of credit based on your equity across more than one property, lend under terms more like business loans for rehabs/brrrs, etc. I haven't been able to locate one however. If you do this kind of lending in southern Cook (Chicagoland) or Will county Illinois, please let me know. If you have worked with these sorts of institutions, and have recommendations or advice to share, I would love to hear more. Everything I've found is more like dscr or hard money related.
Thank you in advance for your help!
Dave

@Dave Kush
Portfolio lines of credit through community banks can definitely be harder to find than traditional investment loans. It may also be worth asking local banks how they handle experienced investors with multiple properties, as some have more flexible portfolio products that aren't widely advertised. I'd focus on finding a lender that understands your long-term portfolio goals, not just the immediate loan request.
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Tom S.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
2mo
@Dave Kush I had good luck working with small local banks for many years in VT, where you got to know the loan officer and they knew the property you were looking to get a loan on.
Commercial lending department, and yes, I was able to get a blanket portfolio loan across a few properties and it was classified as a business loan secured by real estate. Also products like purchase + rehab financing that simply converted to a regular mortgage when complete (no need to refinance after the rehab, and no paying a second set of closing costs).
A good tip was to have the rental income deposited with the same bank, so when applying for the next loan, they already had the numbers which really streamlined the process.
Good luck for the search in your area and hopefully you can find something!
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James Driscoll
Banker · MA · Member since 2026 · 120 posts · 33 votes
1mo
Tom's advice is solid. Small community banks that do portfolio lending really do operate differently from the big guys, and the relationship piece is real. The catch is they can be hard to find because they don't advertise the way national lenders do. A few ways people have had luck locating them: call local commercial real estate attorneys or CPAs who work with investors in your market, since they usually know which banks are actually active and flexible. Same with local real estate investor associations. Community Development Financial Institutions (CDFIs) are another angle worth looking into if you're doing anything with affordable housing or in lower-income census tracts.

The tip about depositing rents at the same bank is genuinely useful. Banks that see your cash flow firsthand rather than relying entirely on tax returns tend to be more comfortable with the story.

One thing worth knowing: if what you're really after is qualifying on property cash flow rather than personal income, DSCR loans have gotten a lot more flexible in the last few years. They're not hard money, they're 30-year fixed products (or ARMs) that underwrite based on rent vs. debt service. Some lenders also offer DSCR equity lines on investment properties up to four units, which can function a bit like the cross-collateral credit lines you're describing, without needing to refinance each property individually. Not quite the same as a true blanket portfolio loan from a community bank, but depending on what you're trying to accomplish it might get you to the same place.

Hope you find the right fit in your market.

James Driscoll
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1mo
I am a huge proponant of small local commuinty banks I have been with my same banker since 93. And would have gone out of business in 2010 GFC if it was not for him going toe to toe with the feds at that time.. My other loans I had with larger institutions all got called with no workout or sympythy forced me to sell in what was probably the worse sellers market of the last century save the great depression.
U want to find the bank that has one or two or maybe three branch's small AUM and where the president is the major owner along with the head credit officer.. then get with the lead lender get to know them and make your pitch..
as a side note these banks live and die on Deposits.. so larger deposits will have an impact for sure 500k to 1 mil really works.. then its your character and your success in the past.
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