I may have written about this before, but over the past six months I've found it a lot easier to find portfolio lenders than anytime in the past 7 years. I have always had a solid real estate record, solid financials, a low DTI, and a high credit score ~800, but until earlier this year I was told no so many times by banks I thought it was my name. :)
I'm wondering if others are seeing the same and I want to encourage those of you who have been told no in the past to try again.
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Not hard at all, brick and mortar local, regional banks and credit unions have been doing them for many years. We've had no trouble getting portfolio mortgages with fixed terms, as well as 5 yr fixed then adjusting. The interest rates are a little higher but still less than private or hard.
@David Krulac I guess your area was less impacted by the downturn than our area was. Credit Unions down here will not even discuss anything but personal residences at least not all the ones I've talked to and there have been several this year.
try Navy Federal, around here there are a dozen CUs. Also brick and mortar banks not the national brands.
I've tried Navy Federal in the past and they said no, too many mortgages (so much for portfolio lending). I haven't tried them this year. One of the RE agents I work with despises them, because they are super slow to close.
I just started calling Portfolio Lenders in Orlando.
There's a good website called www.bankfox.com, the list is kind of old and outdated but it lists all of the "small banks" in your state basically banks or credit unions with less than ten branches, and gives them a score 1 out of 5.
All my properties have been purchased cash, so looking someone to cash me out they said they would have no problem doing a blanket as well as a 5/30 ARM most said 70% LTV and one said 65%.
The big brand banks will not give out more than 4-10 mortgages because they sell their loans and must comply with fannie mae freddie mac rules. The small banks keep them. Any recommendations here in Orlando, FL?
I have used local portfolio lenders in the past, but these types of lenders still count your personal debts against you, which can easily lead to a denial. Unfortunately, bank must follow certain regulations and meet global debt service ratio's. Try an asset based lender as they will only look at the cash flow of the asset, LTV and credit score. They do not care about how many properties you own or personal debts.
Guys I'm not looking. I've found portfolio lenders willing to loan me money. In fact, I've found more than I need right now. Knock on wood!
Hey @Cal C. there are several in our area doing portfolio loans. They just want to make sure that you know what you are doing and have a solid financial statement. You will have to sign personal guarantees for the notes, but everything else can be in entity name. The rate and terms I see are similar to what @David Krulac describes above.
@Stan Butler I'm sure there are others in the area who could benefit by a list of portfolio lenders in the ATL area. I know of Quantum and BB&T. In the Savannah area, I've gotten loans with Ameris (formerly Coastal Bank).
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