Residential Portfolio Loans for 5 or more units

Residential Portfolio Loans

Our Residential Portfolio Loans are designed to help rental property investors purchase and refinance 5 or more units with a single loan or multiple loans, unlock equity, and get cash out of their existing rental investments. This loan is designed to consolidate multiple rental property mortgages into a single loan or subset of portfolio loans so investors can continue to grow their portfolio. Minimum five units per loan.

PURPROSE

Non-Conforming FLEX Portfolio Loans are recommended for borrowers intending to hold a portfolio of 5 or more units for 3 or more years before selling or refinancing. This loan can also be used for short-term holds, however there is a step-down prepayment penalty for the first 3 to 5-years. This is a loan collateralized across multiple residential 1-4 unit and/or multifamily 5+ unit properties up to 20 units. Income producing properties must be performing at a DSCR of 1.15x or more for lowest pricing. DSCR's under 1.15 see a lender point increase of 0.375% to 1% added to the base rate. 

RECOURSE

Recourse and Non-Recourse options available.

PREPAYMENT PENALTY

All Residential Portfolio Loans have a prepayment penalty, usually through the first 3 to 5-years of the loan. Step-down and yield maintenance prepayment options are available. 

  • Step-Down (3-2-1)
  • Step-Down (5, 4, 3, 2, 1)
  • Flat 5% through 5-Years
  • Yield Maintenance

LOAN LIMITS

Residential Portfolio Loans are available for 1st mortgages starting at $100k per property. (exceptions available)

CLOSING

45 to 60 Days

RESERVES

6 to 9-months mortgage reserves are required.

NET WORTH

A strong schedule of real estate owned is important but not required. We usually like to see a net worth equal or greater than the loan amount.

LOAN TERMS & AMORTIZATION

1-4 Unit & Multifamily Portfolios: 5 to 30-year fixed terms. 30-year amortization.

CREDIT SCORE REQUIREMENTS

650+ (exception to 640)

OPERATING INCOME - SEASONING

Approval and interest rates are primarily based upon the net operating income of the property, LTV, and middle credit score. The property must show it has been operating at a net operating income over the last 3-months to support the DSCR at the proposed market interest rate. 

DOCUMENT REQUIREMENTS

 

Key Portfolio Rental Loan Product Facts:

    • Commercial loan underwritten on property cash flow
    • No personal income verification
    • No limit to the number of properties that can be financed
    • Designed for buy-and-hold investors
Standard Portfolio Rental Loans
Express Portfolio Rental Loans
Loan Purpose
  • Purchase or refinance a portfolio of rental properties
  • Refinance and acquire properties under the same transaction
  • Purchase or refinance a portfolio of rental properties
  • Refinance and acquire properties under the same transaction
Borrower Type
Entity (Special Purpose Entity)
Must be a Newly Formed LLC only, unless LLC was used exclusively for a previous loan transaction
Entity (Single Purpose Entity, existing or newly formed)
Equity Pledge
Pledge of Equity from the owner is required
No Equity Pledge required
Interest Rate1
Market
Market
Term
5 to 30-year fixed
5 to 30-year fixed
Amortization
Full amortization up to 30 years, with interest-only option available
Full amortization
Minimum FICO
660 (all Guarantors)
640 (all Guarantors)
Maximum Loan-to-Value (LTV)4
Up to 75% on purchase, limited cash-out refi, and cash-out refi3
Up to 80% on purchase / limited cash-out refi, and 75% on cash-out refi
Loan Amount
$100K - $10MM
$100K - $10MM
($100K minimum property value)
Property or Unit Acquisition Minimum
5 units per loan
5 units per loan
Experience
No first-time homebuyers
No first-time homebuyers
Foreign Nationals
  • Not allowed from ineligible country list
  • LTV is limited to 65%
  • Not allowed from ineligible country list
  • LTV is limited to 70% on purchase/limited cash-out and 65% on cash-out
Property Type Non-Owner Occupied:

  • Single Family Residences (SFR)
  • 2-4 unit residences
  • Condominiums: warrantable and non-warrantable (with reduced leverage)
  • Townhomes
  • Planned Urban Developments (PUD)
  • Multi-family, 5-20 units
 Non-Owner Occupied:

  • Single Family Residences (SFR)
  • 2-4 unit residences
  • Warrantable condos
  • Non-warrantable condos (max 65% LTV)
  • Townhomes
  • Planned Urban Developments (PUD)
  • Multi-family, 5-20 units