Portfolio Loans for 2-4 Plex House Hacking!
The market for multifamily investors is changing right now. It's providing an opportunity for owner occupied multiplex owners in the Portland market (and across other markets). Owner occupied buyers are able to capture a lower interest rate and a lower down payment (3.5-5 % down, which might give you cash left over or enable you to raise your purchase price to beat out cash buyers). Certain portfolio loans (hopefully you can find one in your market) are able to pay off your PMI at closing. Non-owner occupied buyers have to put more money down (25%+) and additionally buy down points on their interest to combat the higher interest rates and get close to cash flow. So, in our market - those with access to an owner occupied portfolio loan are coming up on top. The duplex market, while it still experiences overflow from single family buyers, is easing up with competition from non-owner occupied investors.
If you're looking to call around lenders in your area - a Portfolio loan is a loan product that a lender originates and keeps in house instead of selling on the secondary market to Fannie Mae/Freddie Mac - so they can follow their own rules/interest rates. You can ask what portfolio loans a lender might offer to start you tracking down your deal!
Great Post Hannah! A local lender (Umpqua Bank) has a great portfolio loan.
This is a super helpful post Hannah, and I agree! I have connections to lots of wholesale lenders who can offer products as unique as an investor's situation. Please don't hesitate to reach out to me if you have investors who are looking for creative financing, and a hardworking lender who can find it!
