Bundle loan vs. conventional

3 Replies

Hey everyone, so in an attempt to learn about and prequalify for loan I talked to a small community bank that said they do portfolio lending. I asked them about the different lending options available to me. I told them that I have some cash reserves and a lot of equity in my only rental property, they said I could qualify and they would be willing to do a bundle loan on my existing property with any new property. She really didn't want to go into real details till I qualified. 

I guess my question is should I persue this or look at a conventional loan? Any thoughts would be helpful Into the pros and cons of this.

Local banks and portfolio lenders can be excellent resources! I would see what they have to offer - the conventional loan will be easy to come by if this doesn't pan out. There's obviously risk with tying up your other property as collateral, but it could be a great way to get your foot in the door. I don't think it would hurt to see.

If you have a lot of equity another cool option is getting a HELOC or some other vehicle with revolving credit, so you can use it over and over again without having to qualify each time. These days though, you'll be hard pressed to find someone who will give you a revolving credit line on a house that is not your primary residence!

Thanks Skyler,

I do have some some concerns about that very issue with tying the two together. I had originally thought about the heloc. I plan on going ahead with the paper work. Can't hurt to hear what they're offer.

just to follow up. So they do offer that but, I need to build a little more of a track record with them. And also it would be a 5 year fixed loan amortized 25 years. Said it would be very difficult to sell off just one property out of the loan because they re attached. Well I guess I will worry about it when that product is available to me.

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