@Patrick Jung Excellent experiences with my local portfolio lenders (local banks). I've only used them for distressed property, and terms are commercial (regardless if SFR, duplex, 5 unit). No points, 5 year fixed and then fluctuating, 20 year term. Most were originated around 4-5% range 5-10 years ago and in the 6.5-7% range now. The big banks (Chase, BofA) wouldn't touch these properties.
I've never refinanced them after the rehab. I rent them out, have the tenants deposit the rent into my bank account at these banks, and then the next loan is even easier as they have the rental income right in front of them. Full doc (W2, tax returns) and good credit were always required.
@Patrick Jung In today's market and if you just rehabbed a place, it could make sense to refi into conventional. Typically there are no prepays, although there would be another round of closing costs with the refi. You'd have to shop around. I'm hearing for investment loans, about 6% is the lowest at the moment.
For me, I chose to stay with the original lenders for the relationship. And on my side, I'm 10 years into a 15 or 20 year loans, so the interest I'm paying is minimal and the amount that goes to principal is increasing rapidly. So a refi for me to save 1% on the interest rate doesn't make a huge difference.
Portfolio lenders offer cheaper money than other lenders. They are known to originate "Vanilla Paper"