💼 Portfolio/Blanket Loans | Mortgage Rates LIVE

💼 One loan to rule multiple properties!
Join us LIVE with Daily Mortgage Rates and cover Cross-Collateralized (Portfolio/Blanket) Mortgage Loans, which allow borrowers to finance multiple properties under a single loan.

We’ll discuss how this strategy works, benefits for investors managing multiple assets, and what lenders look for in these portfolio or blanket loans.

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Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages...

Transcript

Today, we're gonna be discussing portfolio or blanket loans. Basically, one loan for multiple properties.

Very common request from our investor borrowers. We do work with a lot of investors. So we'll break this down a little bit here. So let me go ahead and switch my screen, and we'll check out today's live rates. So, as we do every day, we wanna check out the general market conditions.

Typically, the best way to indicate this is the ten-year Treasury, especially when we're talking about different loan programs. There's all kinds of different loan programs, but in general, rates are going to typically track with the ten-year Treasury. So when we look in the smaller scope here, five-day scope, we see a lot of up and down, a lot of news. But if we look overall in the last year, we're pretty much at one-year lows and even some three-year lows in some cases here. So definitely a great time to be out there shopping.

Hopefully, everybody is out there, and seeing some more affordability and some more activity in the real estate marketplace. Now let's check out our standard loan program. So, for our live rates page here, we have dozens of our standard programs that update on a regular basis. And here we can see we set up a standard scenario: a single-family home, $500,000 purchase, $300,000 loan amount. It corresponds to 60% loan to value, 760 estimated credit score, and 40% estimated debt-to-income ratio.

That way we can see the lowest rates offered for all the different programs across the board. And first up here, our conventional options for a primary home: standard thirty-year fixed loan that you think of when you think of a primary home mortgage. Rates as low as 5.875 today. Finally, PR comes in 6.111 when you add in any fees and discount points there. And if our customer doesn't qualify for a conventional option, we typically want to compare an FHA option.

FHA allows more leniency on credit issues, higher overall debt-to-income ratio, but does have additional fees with upfront and yearly mortgage insurance. FHA comes in today a little bit lower rate there, 5.25, but you see the APR with all the fees included: 6.167. Just a touch higher, which is pretty typical when you compare conventional to FHA.

Now, for our VA-eligible borrowers, our active service members, vets, and surviving spouses, VA programs are pretty amazing. I can see here the rates as low as 5.25, but when you look at the APR, 5.5% APR there, definitely much lower fees for eligible vets. So typically, VA is going to be the best option for those that are eligible.

And our other standard option here, USDA programs, are for USDA-eligible properties. Those are the rural areas of the country. So if the property is eligible and our borrower is eligible, these programs are great to compare. Rates as low as 5%. Finally, PR 5.698, which is a little lower than FHA or conventional if our borrower is comparing across those.

So typically, that's one of the best options for those that it works for. And now where we start to shine here at The Mortgage Calculator are outside-the-box options where we can go with our non-QM, our nonstandard options, and use alternative docs here, such as bank statements, 1099s, etc. And this is for our primary home. We can switch to these alternative documents if our borrower—typically our self-employed borrowers—may not qualify conventional FHA, etc. We can switch to non-QM, rates as low as 6%.

Finally, PR 6.272. Very comparable there to conventional. It's always just a touch higher, but that is amazing for our borrowers that would otherwise not be able to get a loan. And we can use all docs for investment properties: rates as low as 6.125. Finally, PR is 6.448.

And we'll compare that to conventional for investment properties. Very similar here, 6.125 rate. Finally, PR 6.438, just a touch cheaper, which is pretty typical. And we also wanna look at our DSCR program. These are our most popular programs.

No income or employment needed. Simply use estimated rents from the rental property to determine a DSCR ratio. If the ratio is over 1.00, the property cash flows. That's what is set up for this scenario. And this option has a three-year prepayment penalty, which is standard: 5.999 rate.

Final APR is 6.307. And we can add a five-year prepayment penalty to lower the rate a touch there: 5.875 rate. Final APR comes in at 6.187 or 6.181, sorry. And that beats conventional, beats all-doc. Pretty amazing when we have a DSCR option that beats everything out there.

And we have our DSCR option for no prepayment penalty, coming in at 6.125 rate, finally PR 6.448. So very similar there for those states that don't allow it or for our customers that don't wish to have one. We do have those options. And there are dozens of other options here: second mortgages, other commercial, SBA, construction, tons of different options.

Please get with our team members to get a full loan estimate on any of our programs. But let's get into our topic for today, which is going to be our portfolio or blanket loans.

So first up, we wanna identify a property. That definitely helps explain what we're talking about here. So I was able to look on LoopNet, which is the website that lists commercial properties, and I was able to find a portfolio sale here.

A portfolio would be where there's multiple properties. So these are three separate properties. They look identical, obviously, probably built by the same developer. At the same time, they look identical, but they are three separate properties, and each of them is a quadplex.

So this is not just one property for $2,200,000. Even though it is labeled as such, it is technically three duplexes. So this is a perfect example. The seller obviously wants to sell them altogether, operates them altogether. So this would be an example of a portfolio sale, where our borrower, if they're going to purchase, needs to purchase all three units at once with one loan, one closing. Or if our seller here maybe doesn't sell and wants to refinance, I will propose that as well.

So this is when we have multiple properties in one loan. This is a perfect example because they're all the same. Makes it nice and easy here.

So first option here for a purchase: pretty amazing. We can do our three-property portfolio using our DSCR value. We can do a thirty-year fixed rate, and we can do a purchase up to 80% loan to value. That does have a standard five-year prepay. That is for those exact properties at this exact moment. So, in this case, the prepayment penalty is 5% in the first year, 4% in the second year, etc. Other than that, standard thirty-year fixed loan, and for the purchase with high credit, of course, we can offer up to 80% loan to value and some pretty smoking rates here. I was pretty amazed this morning.

If you scroll down here, you see we can get 6.67 rate as the lowest rate option, that does have 2.5 discount points in cost. But that's pretty amazing to only put 20% down on a large income-producing property. In this case, it looks like the DSCR ratio was pretty strong. This monthly payment of 11,000 on the listing there—it did say the estimated gross income is about 20,000. So this property does cash flow very strong.

And we'll see here the breakdown. You can see the loan-to-value, the actual breakdown, and that we did use that five-year prepayment penalty and that 760 FICO credit score to get these best options.

And now for our borrowers that own multiple properties, we can do cash-out. So if this property isn't listed for sale and they wanna do cash-out, no problem. We're able to get some pretty amazing rates.

Pretty much the same setup here. This is a thirty-year fixed. This is gonna be the max cash-out. The max I was able to get here, in this case, 75% loan to value, which is going to be the max, typically for most options. And this does include that five-year prepay.

And you'll see here pretty smoking rates: 6.63 rate, having 2.5 discount points of cost. So that's the lowest rate option. Obviously, we can increase the rate a little bit if we wanna lower the cost. But this is pretty amazing to get 75% cash-out and make it pretty easy here if this operator operates these properties altogether. But we often use these portfolio loans to purchase properties exactly in the manner that these are listed here.

Where a seller wants to sell them all in one transaction, we typically want to satisfy that with one agreement and one loan. But obviously, we may get better terms if we do it separately, but this is a very common request.

Now let me talk about a couple pitfalls. Again, we would never want to do this if we didn't have to. So if the seller was able to give us three different purchase contracts, typically that would be preferable because then we could sell each property individually or refinance each property individually, and they wanna be locked in together.

So we need to be cognizant of that. So if the borrower wants to purchase all three at once, but maybe wants to sell one of the three at some point, we may need to propose separate deals or look into the carve-off. So that's where the portfolio loans get a little tricky. Please get with one of our team members. They will find the right option for your exact scenario.

And that wraps up for today. I don't see any questions in the chat there. Again, if you'd like a full breakdown, please get with our team members or go to our website, themortgagecalculator.com. We'd be happy to send you a quote just like I broke down today for any of our scenarios, especially our unique DSCR portfolio or blanket loan options.

So thanks, everybody, for joining us. We'll see you later this week for some more episodes of Daily Rates. Thanks.