Long Term Financing After 10 mortgages

8 Replies


Does anyone have recommendations for long term lenders after you're Fannie/Freedied out?

I've purchased a handful of single family rentals over the last 4 months and I'd like to see how soon I can refinance from my bridge loan into long term debt.

My preferences are 30 years (20 years is okay), 75% LTV (80% ideal), min loan amount could be $50K (most of my properties have an ARV of $70K, although some are higher), preferably portfolio loans (I can bundle 5-15 properties into one loan), and requires less than 12 months of seasoning.

Corevest offers long term lending but has a $75K loan minimum which rules out most of my properties.  Lending Home is also soon entering the Ohio market with long term lending options (if they haven't already) but have similar min loan requirements.  

S&T Bank offers portfolio loans but require 12 months seasoning.  I plan to work with them in the future but want to see what other options might work.

Thanks for any recommendations.

Contact Peggy Alley at Ruoff Mortgage. I have a 30 yr fixed thru her on a $29,000 mortgage in a Cleveland suburb. Obviously, I can't confirm that she can help you, but she was sooooo easy to work with and would certainly let you know right away if she could service loans for you. I highly recommend her! Pm me if you want her contact info. Apparently, I can't post it here.

Hi Jim,

For single refinances the ones I've considered is Lending One and Fund That Flip.  Lending Home will be introducing single refinances to Ohio soon but is not available yet.  If you bundle multiple together and are able to do a portfolio loan ($500K min) I've found Corevest is a solid option.  I also like S&T Bank (they're regional to the area) for both single refinances and portfolios but I'm not sure if you'd have constraints with them if you don't live in the area.

@Jim Haney - not yet - i'm at 8 properties so not quite there and with the current state of affairs I'm contemplating my next near term moves - whether to continue full steam ahead in acquisition or build up liquid funds in the interim.

Following up on this post I want to backtrack partially my endorsement for Corevest as I've finalized a portfolio loan with them for a few reasons.  I'm curious if anyone's had similar experiences or additional feedback:

- You have to bring alot of money to the table for closing. For a $700K portfolio loan I had to bring over $80K to closing, with a sizable portion of it being mandated capex, insurance, tax, and debt reserves. That's just additional money that they get to hold on to that I had to provide so they could be protected.

- Low LTV - After being marketed that they could go up to 70% LTV I was only able to get 62% ARV due to very conservative DSCR requirements that they had in place

- Much higher origination fees then expected. They were marketing a 1 pt for closing costs but it ended up being over 3.5 pts when all origination fees were aggregated. They also have a $7,500 origination minimum fee so if your loan is less than $750K you're going to be paying more. This gets to be very expensive for what turns out be only a 5 year loan

- Intrusive property management and LLC agreements. They require you to create a new LLC in Delaware, which doesn't seem to be a major deal but just adds more complexity and cost to the process. Additionally they mandate certain requirements that need to be included in your LLC's operating agreement as well as they require modifications to your property management agreements that holds the pm liable for payment if I default. This was a major issue to work through with my property managers and was a unique lending requirement for corevest

All in all Corevest seems to talk a good game, but when you get in the weeds they end up under-delivering on what they can provide (not unusual when working with lenders), and the controls they put in place to protect themselves during the loan or unusual and much more costly then market norms.  

For these reasons I am going to look else where for additional long term loans.  I'm interested if others have had similar experiences.