Portfolio lenders keep their loans on their balance sheet, rather than selling them or following Fannie Mae guidelines. Portfolio lending offers flexible borrower qualifications and fast closings so investors can compete with cash buyers. We reviewed the most popular national portfolio lenders and chose the top six considering rate, terms, property types, and qualifications.
Top Real Estate Portfolio Lenders for Investors 2019
(Best overall) Investors looking to grow a large portfolio
Long-term financing or cash out financing for rent-ready properties
Best single-source lender
Aggressive ground-up construction loans
Large loan amounts up to $200 million
Credit union with loans from $5 million to $35 million
What a Portfolio Lender Is
Portfolio mortgage lenders provide unconventional mortgages primarily for investors looking for either short-term, fast-cash solutions, long-term blanket mortgages for multiple rental properties, or commercial financing. They do not sell their loans. Instead, they hold the notes, carry the risk, and charge premium fees up to 5% and premium rates that can exceed 13%.
Portfolio lenders help investors finance real estate transactions that may otherwise be denied by conventional loan guidelines. Check out our guide to portfolio loan mortgages to read more about how they work and when they’re good to use.
If you are looking for a portfolio lender for large projects, consider our top pick, CoreVest. It’s easy to apply for a loan with CoreVest. Visit its website, fill out the online form, and a representative will call you back within 24 hours to personally discuss your goals.
How We Evaluated the Best Real Estate Portfolio Lenders
The best portfolio lenders offer a quick prequalification process, usually prequalifying borrowers within 24 hours. They each offer different maximum loan amounts and varying terms and can feasibly offer loans as high as their balance sheets will allow. When choosing a lender, review qualification guidelines such as maximum loan-to-value (LTV) ratio or minimum FICO score.
We compared the top portfolio mortgage lenders based on:
- Rates: Interest rates charged on funds borrowed against investment properties
- Costs: Loan origination fees and closing costs
- Terms: Available repayment schedules of one to 30 years
- Funding time: Time to close and fund the loan
- Qualifications: Borrower and property qualifications
- Loan amount: Minimum and maximum loan amount of up to $200 million
Investors look for portfolio lending products with flexible loan types and lenient credit and property condition requirements that can close fast. Our research considers these needs as well as portfolio lender reviews, max LTVs, and lending limits. We only considered national companies that offer residential and commercial loans.
CoreVest: Overall Best Portfolio Lender for Real Estate Investors
CoreVest is our best portfolio mortgage lender for real estate investors. Having closed more than $6 billion in loans and more than 40,000 properties, it offers a variety of portfolio loans. In addition, its 600 minimum credit score isn’t as strict as Lima One Capital, and its available 30-year amortization gives it a broad reach to investors.
CoreVest Types of Portfolio Loans
CoreVest offers several portfolio loan product options, including short-term fix-and-flip loans, ground-up construction, and permanent rental property financing. Some advantages to using a one-stop-shop portfolio lender are once the lender gets to know you and understands your business practices, approvals get easier, and costs go down.
CoreVest portfolio loans include:
- Blanket mortgage: Portfolio lending that combines five or more stable rental property mortgages into one loan
- Single rental property: Fixed rate for currently leased rental properties
- Fix-and-flip credit line: Purchase properties quickly with a line of credit
- Fix-and-flip bridge loan: Purchase and renovate a single project
- Ground-up construction: Financing for experienced developers for renovations or ground-up construction on fully platted lot
By offering a variety of portfolio loan products for real estate investors, CoreVest is best for those wanting to finance a fix-and-flip or distressed property, and then put a long-term mortgage on the property. This is unlike the offerings from Visio Lending, which prefers to finance long-term loans on rent-ready properties.
CoreVest Portfolio Loan Rates & Costs
CoreVest portfolio mortgage loan rates vary based on the investors’ experience, the equity in the property, and the potential upside of the project. In addition, some products rates and fees are influenced by credit score, cash reserves, and debt service coverage ratio (DSCR).
CoreVest portfolio loan costs include:
- Interest rate: Start at 5% fixed and floating available depending on the product
- Loan origination fees: 2% or higher
- Closing costs: 2% to 5%
- Prepayment penalty: 0% to 1%
Larger loan amounts and lower LTV ratios typically result in lower interest rates. Interest payments are fully amortized during the life of the loan. Like many portfolio mortgage lenders, CoreVest’s short-term portfolio mortgage loans do not charge prepayment penalties.
CoreVest Portfolio Loan Terms
CoreVest offers the following terms on their portfolio loans:
- Blanket mortgage: Five-, seven-, and 10-year terms, up to 75% cost, five or more properties, purchase or refinance, nonrecourse available, $500,000 to $1 million
- Single rental property: 30 years, up to 75% LTV, $67,500 to $1.9 million, single-family residences, two to four units, condos and townhouses
- Fix-and-flip credit line: 18- to 24-month terms, $100,000 to $50 million, one to 500 properties
- Fix-and-flip bridge loan: Single project, up to 24 months, $150,000 to $25 million
- Ground-up construction: 12 to 24 months, $250,000 to $5 million, milestone draws, nonrevolving, single-family two to four units
Depending on the portfolio loan product, CoreVest offers loan terms as short as 18 months or as long as 30 years. Investors looking to build their real estate portfolio by buying distressed properties with a line of credit and then using that line to renovate the property should check out CoreVest. However, if your project is less than $67,500, look into LendingOne’s fix-and-flip loan products, which start at $45,000.
CoreVest Minimum Qualification
CoreVest has the following qualifications for its portfolio loans:
- Credit score: 600 or higher
- DSCR: 1.25 time or higher
- Stable occupancy: Three or more months at 90%
- Cash reserves: Six or more months
CoreVest offers flexible borrower and property qualifications. However, it does require more reserves than Visio Lending. These qualifications are standard among portfolio mortgage lenders, and its 600 minimum credit score requirement is the lowest on our list.
CoreVest Portfolio Loan Funding Time
CoreVest can fund their bridge loans within three to four weeks, which is about the same as LendingOne and Lima One Capital but faster than PGIM Real Estate Finance. Most of its rental loans close within four to six weeks, which is an average of most lenders, including conventional financing.
What CoreVest Is Missing
CoreVest is our top pick for portfolio lenders because it offers a variety of portfolio mortgage loans, including blanket mortgages and lines of credit. However, if you’re an investor operating on a larger scale and want to buy a property for more than $100 million, then CoreVest won’t work for you. Instead, you can work with PGIM Real Estate Finance.
CoreVest Customer Reviews
CoreVest, formally Colony American Finance, started in 2014 and was founded in Irvine, California. Experienced borrowers are saying online that CoreVest is a great leverage partner that thinks outside the box. For more information on CoreVest or to leave your own review, visit our CoreVest reviews.
How to Apply With CoreVest
You can apply for a portfolio loan with CoreVest by visiting their website and clicking the “Get Started” button, which takes you through a short quiz about your financing needs. You can also email the company from the site or fill out a contact form, and a representative will get back to you usually within 24 hours.
Visio Lending: Best Portfolio Lending for Rent-ready Landlords
Visio Lending is the best portfolio lender for rent-ready landlords looking for long-term financing or cash out opportunities to grow their portfolio. Visio has bought, sold, or financed more than $275 million in residential real estate nationwide. It’s best for investors with several rental properties that are no longer eligible for Fannie Mae or Freddie Mac financing.
Visio Lending Types of Portfolio Loans
Visio Lending offers the following types of portfolio loans:
- Rental 360 loan: Good investment property loan for experienced investors looking to grow their single-family rental portfolio
- Rental 360 portfolio loan: Good for investors looking to simplify their portfolio loans; allows investors to refinance three to seven properties at once with one closing and one monthly payment
- Bridge loan: Good for investors wanting to cash out while their property is on the market, allowing you to purchase another property with 24-month, interest-only payments
Visio Lending offers different rates, terms, and qualifications for each loan program. Its website is very transparent. Rates are calculated based on your middle credit score, LTV, and DSCR. It only finances rent-ready properties with a C4 appraisal rating and no deferred maintenance with a minimum property value of $75,000.
Visio Lending Portfolio Loan Rates & Costs
Visio Lending costs include:
- Interest rate: Starting at 5.2% depending on the product, LTV, and DSCR
- Loan origination fees: Starting at 2%
- Closing costs: 2% to 5%
- Prepayment penalty: None on their bridge loan, other loans depend on borrower’s qualifications and loan terms
Visio Lending is transparent regarding interest rates and fees. Like Lima One, you can go to its website, find your credit score, calculate your DSCR, and select your desired loan to value to get pricing. Visio’s loan origination fees are similar to CoreVest, and its estimated closing costs are the same as the other portfolio mortgage lenders on our list.
Visio Lending Portfolio Loan Terms
Visio offers short-term and long-term products for purchases and refinances. Ranging from a 24-month bridge loan to a 30-year fixed rental property loan. They only require a 30-day seasoning on refinances, which helps landlords who buy distressed properties, fix them up, and want a long-term mortgage.
Visio Lending offers portfolio loans with the following terms:
- Rental360 product: Full 30-year term, no balloon payments, and choice of 5/1 or 7/1 adjustable-rate mortgage (ARM) or a 30-year fixed interest rate structure.
- Rental360 portfolio: 5/1 and 7/1 ARM or 30-year fixed.
- Bridge loans: Two years interest only, no prepayment penalty or DSCR requirement.
- Loan amounts: $75,000 to $2 million but will go as low as $45,000 on some deals; will consider deals of more than $2 million as well.
Visio Lending Minimum Qualifications
Visio lends on rent-ready properties, unlike Lima One who focuses on fix-and-flip projects. In addition, it has minimum credit requirements, reserves, and DSCR limits.
Visio Lending has the following qualifications for its portfolio loans:
- Credit score: 660 or higher; loan amount caps based on credit score; no late mortgage payments in the past 12 months
- DSCR: Down to .80 or higher, divide the monthly rent by the monthly principal, interest, property tax, insurance, and association dues (PITIA)
- Stable occupancy: Properties have a documented stable rental history
- Cash reserves: At least three months
Visio Lending Funding Time
Once your appraisal is ordered, Visio typically closes within 21 business days, similar to CoreVest and Lima One Capital. Loans are generally funded within 24 hours of closing for purchases and within 48 hours of closing for refinances.
What Visio Lending Is Missing
Visio Lending does a good job of tailoring loans for rent-ready residential units with no deferred maintenance. Investors have several products to choose from to expand or improve their rental portfolios. It does not serve investors looking for portfolio lending on distressed properties, manufactured homes, multifamily greater than four units, or commercial properties.
Visio Lending Customer Reviews
Visio Lending has an A+ rating with the Better Business Bureau, and it has 3.8 out of 5 stars based on 29 customer reviews. For more reviews on Visio Lending, check out our Visio Lending reviews.
How to Apply With Visio Lending
If you are looking for one of the best portfolio lenders for rental landlords, offering long-term solutions with transparent pricing, apply for a rental mortgage loan with Visio Lending. Visit its website, fill out its simple online contact form, and it will reach out to you, and have your pre-approval ready within 24 hours.
Lima One Capital: Best Portfolio Lender for Fix-and-Flip Investors
Lima One Capital is a portfolio lender that offers a wide variety of portfolio mortgage loans, including four different options for fix-and-flippers, which makes it a good alternative to CoreVest. Lima One Capital raised more than $1 billion in capital from investors. It’s best for investors looking for a single-source lender.
Lima One Capital Types of Portfolio Loans
Lima One Capital offers the following types of portfolio loans:
- Fix-and-flip loans: For the investor who wants to purchase, renovate, and sell an investment property all in one loan with up to 75% after repair value (ARV)
- Bridge loan plus: For an experienced investor looking to purchase or refinance for resale or bridge to a long-term financial product, up to 80% LTV
- Construction loan: If you own your lot free and clear and need construction capital, up to 70% ARV, LTV “as is” 50%, 13 months
- Rental30: 30-year fully amortized loan with competitive rates, minimum loan amount of $50,000, up to 75% LTV
- Rental30 Premier: 30-year fully amortized loan with competitive rates, minimum loan amount of $500,000 and five properties, up to 80% LTV, nonrecourse available
- Rental 2+1: Bridges the gap between short-term and long-term financing; two-year interest only, up to 75% LTV, minimum loan amount $50,000
- Multifamily rehab: Investors looking to purchase and rehab multifamily properties, two-year interest only, 80% loan-to-cost (LTC) ratio, minimum loan $250,000, nonrecourse available
- Multifamily stable: Investors looking to purchase, refinance, and cash out of stable rental properties, 2-year interest only, 75%% LTV, minimum loan $250,000, nonrecourse available
Lima One Capital offers a variety of products. This range of options can help an investor make money flipping houses. Some of its products, like its multifamily loans, allow investors to include closing fees and costs into its loans, keeping the amount of upfront cash to a minimum.
Lima One Capital Portfolio Loan Rates & Costs
Lima’s One’s rates and fees range depending on the applicant’s credit, the project’s LTV, and the loan product, with the best rates going to those with low LTVs and high credit scores. Like LendingOne, it offers the ability to wrap fees and closing costs into the loan.
Lima One Capital offers the following costs:
- Interest rate: Starting at 5%, depending on the product
- Loan origination fees: 0% to 3.5%, closing costs: 2% to 5%
- Prepayment penalty: 0% to 1%, Rental30 loans have prepayment penalties for the first five years
Lima One Capital’s rates on long-term portfolio loans are lower than its fix-and-flip portfolio loans, but both are competitive with CoreVest. Fix-and-flip rates are between 8% to 12% (interest only) while their long-term loans range from 5.00 % to 7.99% (fully amortized)
Lima One Capital Portfolio Loan Terms
Lima One Capital has the largest menu of products of all the lenders we reviewed. Giving investors lots of options from which to choose. Each product has different terms, minimum loan amounts, rates, and requirements.
Lima One Capital offers the following portfolio lender terms:
- Fix-and-flip loans: Up to 75% ARV, 90% purchase and rehab cost, up to 13 months, 600 minimum credit score
- Bridge loan plus: Up to 80% LTV, five or more property experience, 13-month term
- Construction loan: Up to 70% ARV, LTV “as is” 50%, 13-month term, cash out, the property must be owned free and clear, 50% as is LTV
- Rental30: Up to 75% LTV, 30-year fully amortized, minimum loan of $50,000, minimum property value $60,000, minimum credit score 660
- Rental30 Premier: Up to 80% LTV, 30-year amortized, minimum loan $500,000 and five properties, nonrecourse acceptable, minimum property value $60,000, minimum credit score 660
- Rental 2+1: Up to 75% LTV, two-year interest only with one-year extension available, minimum loan amount $50,000, purchase or refinance
- Multifamily rehab: Up to 80% LTC, two-year interest only, minimum loan $250,000, nonrecourse available, cash out available up to 55% LTV.
- Multifamily stable: Up to 75%% LTV, two-year interest only, minimum loan $250,000, nonrecourse available, cash out available up to 60% LTV
Lima One Capital Minimum Qualifications
Lima One Capital has the following portfolio loan qualifications:
- Credit score: 600 or higher for fix-and-flip; 660 or higher for Rental30
- DSCR: 1.25 times or higher
- Stable occupancy: At least three months at 90% occupancy
- Cash reserves: At least six months
Lima One Capital has different qualification requirements for each product. Minimum credit scores range from 600 to 660 and, like Visio, it only lends on residential investment property.
Lima One Capital Portfolio Loan Funding Time
Depending on the portfolio mortgage loan product you choose, closing times can range from two to four weeks. Having your documentation ready, including your previous experience can expedite the process.
What Lima One Capital Is Missing
Lima One Capital is great if you’re a real estate investor with a high credit score of more than 660. However, if your FICO score is less than 660, then this isn’t the right portfolio lender for you. Instead, try CoreVest for a portfolio loan. It also does not offer blanket loans for multiple properties. Try one of our other portfolio lenders like Visio.
Lima One Capital Customer Reviews
Lima One Capital has an A+ rating with the Better Business Bureau and has received 4.3 out of 5 stars based on one customer rating. For more reviews and information about Lima One Capital, check out our Lima One Capital reviews.
How to Apply With Lima One Capital
Lima One is a great portfolio lender for fix-and-flippers looking for a single-source lender or to bridge the gap between short-term and long-term financing. You can get approved fast by visiting Lima One Capital and clicking the “Apply Now” button.
LendingOne: Best Portfolio Lender for New Construction
LendingOne is the best portfolio lender for investors looking for ground-up construction. Although they offer many loan types, they have an aggressive new construction product compared to other portfolio lenders. LendingOne and its affiliates have invested more than $500 million in real estate projects. It’s a solid option for real estate investors and small developers.
LendingOne Types of Portfolio Loans
LendingOne is a good option for builders, developers, and investors looking for competitive portfolio lending for the acquisition, development, or construction of ground-up projects. Short-term investors looking to fix-and-flip within 12 months, and investors looking to expand or enhance their rental portfolios with long-term fixed rates are also a good fit.
LendingOne offers the following types of portfolio loans:
- Fix-and-flip loans: Short-term hard money loans used to compete with cash buyers, up to 90% of purchase and rehab cost, 600 minimum credit score, loans from $75,000 to $10 million
- RentalOne: Investors expanding or enhancing their rental portfolio, up to 80% LTV, fixed 30-year term, cash out acceptable, 640 minimum credit score, $75,000 to $2 million
- New construction loans: Ground-up construction financing, up to 85% of project cost for single-family residences and large multifamily properties, specs allowed, $500,000 to $5 million
LendingOne offers aggressive LTVs and high maximum loan amounts. For fix-and-flips, it requires the investor to own their own home and gives preference to experienced investors. It requires six to 12-months PITIA cash reserves but allows interest reserves to be included in the loan amount, saving upfront required cash for closing costs.
LendingOne Portfolio Loan Rates & Costs
LendingOne offers fix-and-flip and rental loan products, each with different rates and terms. Its 30-year products start in the 5% range and fix-and-flip start around 8%. Rates are based on credit score and LTV. Its loan origination fees are one of the lowest in our research.
LendingOne comes with the following costs:
- Interest rate: 4.99% to 12% fixed or variable
- Loan origination fees: 1.75% to 3%
- Closing costs: 2% to 5%
- Prepayment penalty: Only on long-term rental property loans, first five years
LendingOne offers discounts for loyal investors, something we didn’t find on other lenders sites. If you finance your fix-and-flip with LendingOne and finance the same property into their RentalOne program, you will qualify for discounted loan fees.
LendingOne Portfolio Loan Terms
LendingOne offers portfolio loans with the following terms:
- Fix-and-flip loans: Up to 90% of purchase and rehab cost, 600 minimum credit, loans from $75,000 to $10 million, 12-month terms, no interest charged on unused rehab funds
- RentalOne: Up to 80% LTV, fixed 30-year term, cash out available, 640 minimum credit, $75,000 to $2 million, no personal income verification, no seasoning requirements
- New construction loans: Up to 85% of project cost, specs allowed, 12- to 24-month term, $500,000 to $5 million, redevelopment, conversion, and condos permitted, interest-only
LendingOne’s loan terms vary depending on the investor’s goals. They have short-term products for fix-and-flip investors and long-term products for buy-and-hold investors.
LendingOne Minimum Qualifications
LendingOne offers the following portfolio loan qualifications:
- Credit score: 600 or higher for short-term loans, 620 or higher for long-term loans
- DSCR: No restrictions
- Occupancy: Three or more months stable occupancy at 90%
- Cash reserves: Six or more months
Like CoreVest, LendingOne will allow for credit scores as low as 600 on their short-term products. Its long-term products require a 620 minimum, which is lower than Lima One Capital. LendingOne is the only lender to have no DSCR restrictions on its portfolio mortgage loans.
LendingOne Funding Time
LendingOne offers 10-day funding times on its one-to four-unit fix-and-flip products, three- to four-week funding times on their long-term products, and 30 days on their ground-up construction. They are a financial technology company and have an online portal for submitting projects, ordering appraisals, and requesting draws and payoffs.
What LendingOne Is Missing
LendingOne offers many portfolio loan options. However, it only offers loans up to $10 million, which is lower than some of the other lenders we reviewed.
LendingOne Customer Reviews
LendingOne has an A+ rating with the Better Business Bureau (BBB) but doesn’t have reviews on the site. For more information on LendingOne, check out our LendingOne reviews.
How to Apply With LendingOne
LendingOne has flexible portfolio loan products, including new construction loans. It is easy to apply with LendingOne on its website, clicking the “Apply Now” button and be pre-approved in minutes. Alternatively, you can contact the lender directly through the site, and a representative will get back to you.
PGIM Real Estate Finance: Best Portfolio Lender for Loans Up to $200 Million
PGIM Real Estate Finance is our best portfolio lender for large and complex projects up to $200 million. This international commercial portfolio lender manages $91.2 billion in assets and offers commercial term loans. PGIM Real Estate Finance is the right lender for large investors who need loans between $5 million and $200 million.
PGIM Real Estate Finance Types of Portfolio Loans
PGIM Real Estate Finance offers the following types of portfolio loans:
- Blanket mortgages: Funds two or more pieces of properties under a single loan
- Term loans: Funds loans on properties with 1 to 4 units
- Multifamily loans: Offers multifamily financing for properties with five or more units
PGIM Real Estate Finance is a commercial portfolio lender that funds very large projects. PGIM Real Estate Finance focuses on deals between $5 million and $200 million, unlike Patch of Land, who’s maximum commercial portfolio loan amount is $3 million. Typical commercial properties PGIM Real Estate Finance finances include industrial buildings, apartments, grocery-anchored retail, dominant malls, and senior housing.
PGIM Real Estate Finance Portfolio Loan Rates & Costs
PGIM Real Estate Finance costs include:
- Interest rate: 5% to 9% fixed or variable
- Loan origination fees: 0% to 1%
- Closing costs: 2% to 5%
- Prepayment penalty: 1%
PGIM Real Estate Finance, like CoreVest, has interest rates that range from 5% to 9%. Interest rates are higher for shorter terms and lower loan amounts and lower for larger loan amounts. Like the other portfolio lenders on our list, PGIM Real Estate Finance uses borrower qualifications when assessing potential interest rates.
PGIM Real Estate Finance Portfolio Loan Terms
PGIM Real Estate Finance terms are generally:
- Terms for general purpose loans for one to four units: 5 to 20 years
- Terms for general purpose loans for five or more units: 5 to 20 years
- Loan amounts: $5 million to $200 million
PGIM Real Estate Finance is unique on our list of top portfolio lenders because it offers general-purpose commercial portfolio mortgage loans with terms between three and 20 years. It’s a large portfolio lender that offers the highest loan amounts on our list.
PGIM Real Estate Finance Minimum Qualifications
PGIM Real Estate Finance has a minimum credit score, DSCR, occupancy, and cash reserve requirements for its commercial portfolio loans.
Qualifications for PGIM Real Estate Finance portfolio loans include:
- Credit score: 660 or higher
- DSCR: 1.25 times or more
- Occupancy: Three months or more stable occupancy at 90%
- Cash reserves: 6 months or more
Its minimum credit score is the same as Lima One Capital and higher than CoreVest. The occupancy and cash reserve requirements are the same for all of the portfolio mortgage lenders on our list.
PGIM Real Estate Finance Portfolio Loan Funding Time
PGIM Real Estate Finance portfolio loan funding time varies. Typically, it handles complex loans for unconventional properties like senior living, industrial, multifamily, and hotels. These transactions take more due diligence time, which affects funding times.
What PGIM Real Estate Finance Is Missing
PGIM Real Estate Finance is great for large real estate investors who want portfolio loans with minimum loan amounts of $10 million or higher, but it’s not right for investors who want smaller loans. It also requires a FICO score of 660 or higher, so if your credit score isn’t that high, it’s probably not the right choice for you. Instead, check out CoreVest.
PGIM Real Estate Finance Customer Reviews
We haven’t found any reviews for PGIM Real Estate Finance, but it’s owned by Prudential Financial, which was founded in Newark, New Jersey, in 1875. They have large loan minimums, which probably means fewer investors are using them, but we found no major complaints.
How to Apply With PGIM Real Estate Finance
You can apply for a portfolio loan with PGIM Real Estate Finance on their website by clicking the contact section. You can choose to contact one of its regional offices or contact the lender based on the type of loan you’re interested in. It has offices in 16 countries, so you can select the location most convenient for you.
Alliant Credit Union: Best National Credit Union With Commercial Portfolio Lending
Alliant Credit Union is our best portfolio lender for a credit union offering commercial portfolio loans. This national lender manages $11 billion in assets and offers commercial term loans. Although Alliant Credit Union has only two locations, they do commercial portfolio loans in all 50 states on large projects from $5 million to $35 million.
Alliant Credit Union Types of Portfolio Loans
Alliant Credit Union offers the following types of portfolio loans:
- Multifamily loans: Financing for age-restricted, Section 8, student housing, and market-rate large number of unit properties
- Industrial loans: Loans for warehouses, flex spaces, single and multi-tenant industrial properties in the top 75% of PWC ranked markets and in the top 50% ranking by asset class
- Office building loans: Loans on office buildings with A to C+ asset class ratings also in the top 75% PWC ranked markets
- Commercial retail loans: Loans for multitenanted retail centers with limited internet exposure and no tenant representing more than 35% of the property’s income
- Self-storage loans: Existing properties only; gated and fenced; controlled access with 24/7 monitoring; other properties considered on a case-by-case basis
- Manufactured housing community loans: loans for age-restricted manufactured housing communities; financing is for pads only
- Commercial hospitality loans: Loans for existing properties only; prefer 100-plus keys and major franchise affiliation, in major commercial or vacation demand area; urban or suburban, but near major demand generators like airports
- Structured and surface parking lot loans: Loans for parking should be located in an area of demonstrated demand and consistent usage with easy access to major thoroughfares; minimal to no deferred maintenance
Alliant Credit Union is a national commercial portfolio lender that funds projects between $5 million and $35 million Typical commercial properties Alliant Credit Union finances include industrial complexes, large multifamily apartments, self-storage, manufactured housing communities, hospitality buildings, retail, and parking. Alliant Credit Union only works through mortgage brokers; not directly with investors, so if you want funding through them, contact your mortgage broker.
Alliant Credit Union Portfolio Loan Rates & Costs
Alliant Credit Union doesn’t publish their interest rates, so interested borrowers need to have their mortgage brokers call for rates based on the type of property they’re looking to finance and their personal profile. Alliant offers both fixed and variable rate commercial portfolio loans.
Alliant Credit Union costs include:
- Interest rate: Dependent on the transaction characteristics; Risk-based pricing for investment mortgage interest rates varying with LTV, DSCR, market, and sponsor
- Processing fees: Ranging between $4,500 and $50,000 depending on property type, location, and underwriting scope
- Prepayment penalty: Starts at 3% in year one, declines 1% each year reaching 0% after year three, depends on the property type
Alliant Credit Union Portfolio Loan Terms
Alliant Credit Union offers five-, seven-, and 10-year terms and will also consider 5+5 and 7+3 structures where a borrower can refinance at the end of the five- or seven-year term, depending on the type of property. Loan amounts range from $5 to $35 million with both recourse and nonrecourse options depending on the property type.
Alliant Credit Union Terms include:
- Terms: Five, Seven and 10 years; will consider 5+5 and 7+3 structures on some loans; amortization varies up to 30 years
- Loan amounts: $5 million to $35 million
- Recourse & Nonrecourse: 100% recourse, LTV >60% or net worth below 2x loan request; 25-50% recourse, LTV 50%-60%; Nonrecourse, LTV <50%
What’s unique about Alliant Credit Union on our list of top portfolio lenders is that it is a national credit union offering commercial portfolio loans. Some local credit unions offer portfolio loans, but they do not have the national reach offered by Alliant. Investors with LTVs less than 50% can also qualify for nonrecourse loans.
Alliant Credit Union Minimum Qualifications
Alliant Credit Union also has a minimum credit score, DSCR, occupancy, and cash reserve requirements for its commercial portfolio loans. Credit scores for a portfolio loan from Alliant Credit Union are generally 720 or higher. Alliant Credit Union also focuses on the DSCR, which is typically around 1.25% for most property types. Occupancy varies by property, and they generally do not want any single occupant to be over 35% of the rental income.
Qualifications for Alliant Credit Union portfolio loans include:
- Credit score: 680 or higher; mid-scores, most products require 720 or higher
- DSCR: Starting at 1.2; Typically, 1.25 for most property types
- Occupancy: Varies depending on the type of property
- Cash reserves: Tax reserves are required on some property types
Alliant Credit Union Portfolio Loan Funding Time
Alliant Credit Union doesn’t publish the time it takes from application to closing and receiving funds for a loan. We did find a few independent reviews that said the loan funding time was approximately 60 to 90-days. Alliant offers a 60-day rate lock fee, so if borrowers lock their rate, they should ask about closing time and how to extend the rate lock without incurring additional fees.
What Alliant Credit Union Is Missing
Unlike Visio Lending, Alliant Credit Union doesn’t work directly with investors. Alliant only works through mortgage brokers, so investors have to find a mortgage broker to facilitate the transaction. Alliant also doesn’t provide upfront information on interest rates, closing costs, and time to funding, making it challenging for investors to compare loan products.
Alliant Credit Union Customer Reviews
We were unable to find reviews for commercial loans from Alliant Credit Union. There are many reviews for other products and services through Alliant Credit Union. Business owners reported that the time to funding was the biggest challenge and some reviewers complained about undisclosed fees.
How to Apply With Alliant Credit Union
You can apply for a portfolio loan with Alliant Credit Union by contacting a mortgage broker to facilitate the process. You can also go to their website and click, “Borrow,” “Commercial Real Estate,” and scroll to the contact page at the bottom where you will find contact information for their commercial real estate experts based on region. From there, you can inquire about their process and how to get started.
Portfolio Lending Frequently Asked Questions (FAQs)
Below, we’re going to answer some of the most FAQs on portfolio loans. However, as with any type of financing, some questions are asked more frequently than others. If we have not answered your question, feel free to visit the Fit Small Business forum.
What is the difference between a blanket mortgage, portfolio loan, and portfolio lending?
Blanket mortgages finance two or more properties with only one loan. A portfolio loan technically is a loan a lender holds in-house in their portfolio to earn interest and doesn’t sell it on the secondary market. Portfolio lending is when lenders will fund investors buying portfolios of real estate, typically exceeding five properties.
Is a jumbo loan the same as a blanket loan?
Jumbo loans are not the same as blanket loans. Blanket loans “cover” multiple properties. Jumbo loans are loans that exceed the Federal Housing Finance Agency (FHFA) limits. In 2019, the jumbo loan limit for most of the U.S. is $484,350. Jumbo loans cover one property exceeding that limit and typically carry higher interest rates.
Do all portfolio lenders consider FICO scores?
While many portfolio lenders consider credit scores, some lenders will look at the DSCR, the property’s income, and deal structure. Having a good credit rating can be helpful. It shows a borrower can manage their personal finances, but if the deal is solid, and the lender is lenient on credit scores, it is not required.
How do I start building a real estate portfolio?
If you want to build a real estate portfolio, start by learning how to buy an investment property. Look at prospective investment properties and run a few cash flow projections, including all projected income, expenses, and vacancy rates. Buy your first property, then learn how to buy and finance multiple investment properties.
Real estate portfolio lenders offer unconventional financing for investors wanting to purchase, renovate, cash out, build, or lease. Their loans stay in-house making them a terrific option for financing real estate investments. Our research compared key features including rates, terms, and qualification minimums to help you decide which lender is best for you.
CoreVest is our choice for the best portfolio lender for 2019. It offers short-term loans, lines of credit, and long-term permanent loans with competitive rates and lenient qualifications for residential investors. Once you fill out CoreVest fast and easy online form, a personal representative will get you pre-approved within 24 to 48 hours.