Portfolio lenders keep their loans on their balance sheet, meaning they don’t have to follow Fannie Mae’s guidelines so they can offer more flexible borrower qualifications. There aren’t that many reputable nationwide portfolio lenders, but we reviewed them all and chose the top five. They all offer portfolio loans with terms from one to 30 years.
Top Real Estate Portfolio Lenders for Investors
| CoreVest | Best overall because it offers five different types of portfolio loans for investors of all sizes |
| Visio Lending | Borrowers wanting a solid alternative to CoreVest or those with loans on multiple investment properties. |
| Lima One Capital | Fix-and-flip investors looking for a variety of loan options |
| Lending One | Short-term multifamily portfolio loans for investment properties up to 40 units |
| PGIM Real Estate Finance | Portfolio loans up to $200 million for large real estate investors |
How We Evaluated the Best Real Estate Portfolio Lenders
We know that investors looking for portfolio loans need flexible loan types that can finance more than one property at a reasonable rate. Furthermore, most lenders need a national option that is highly reputable. For this reason, we only looked at national lenders that offered loans that can finance two or more properties, both commercial and residential.
Specifically, we compared the top portfolio lenders based on:
- Rates: Interest rates of 5% to 12% or more
- Costs: Loan origination fees and closing costs
- Terms: Length of the loan from one to 30 years
- Funding time: Time to close the loan
- Qualifications: Borrower and property qualifications
- Loan amount: Maximum loan amount it offers, up to $200 million
The top portfolio lenders all offer a quick pre-qualification process, usually pre-qualifying borrowers within 24 hours. They all offer different maximum loan amounts and varying terms since they’re not regulated by Fannie Mae or Freddie Mac. This means that they can feasibly offer loans as high as their balance sheets will allow. When choosing a lender, pick one that has qualifications you meet, such as minimum FICO score.
Best Overall Portfolio Lender: CoreVest
CoreVest is our choice for best portfolio lender of 2018 for real estate investors. It has closed more than $3 billion in loans, and it offers a variety of portfolio loans, including blanket mortgages and short-term bridge loans. Its credit score qualifications aren’t as strict as other portfolio lenders like Lima One Capital and PGIM Real Estate Finance. This lender is right for investors who want one reputable lender with multiple loan products.
Types of Portfolio Loans Offered By CoreVest
CoreVest offers the following types of portfolio loans:
- Blanket mortgage: One loan finances multiple properties
- Term loan: 5- to 30-year loan term for properties with 1-4 units
- Line of credit: Offered on properties with 1-5+ units
- Bridge loan: Temporary financing with terms of 1-3 years
CoreVest Portfolio Loan Rates & Costs
Costs offered by CoreVest include:
- Rate: 5% to 8% fixed
- Loan origination fees: 2% or higher
- Closing costs: 2% to 5%
- Prepayment penalty: 1%
Larger loan amounts typically result in lower interest rates. A borrower’s qualifications will often dictate the size of their interest payments as well. Interest payments are fully amortized over the life of the loan.
CoreVest Portfolio Loan Terms
CoreVest offers the following terms on their portfolio loans:
- Terms for 1-4 units: 30 years
- Terms for multiple properties: 5-10 years
- Terms for line of credit: 18-24 months
- Terms for bridge loan: 1-3 years
- Loan amounts for 1-4 units: $67,500-$4 million
- Loan amounts for multiple properties: $500,000-$100 million
- Loan amounts for line of credit: $1 million-$50 million
- Loan amounts for bridge loans: $250,000-$3 million
- LTV: 75%-80%
CoreVest Minimum Qualifications
CoreVest has the following qualifications for its portfolio loans:
- Credit score: 600+ (check yours free here)
- Debt service coverage ratio (DSCR): 1.25+
- Stable occupancy: 3+ months at 90%
- Cash reserves: 6+ months
These qualifications are pretty standard among portfolio lenders and the credit score requirement is the lowest on our list.
What CoreVest is Missing
CoreVest is our top pick for portfolio lenders because it offers a variety of portfolio 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 of more than $100 million, then CoreVest won’t work for you. Instead, you can work with PGIM Real Estate Finance.
CoreVest Customer Reviews
We didn’t find any external online customer reviews of CoreVest. It has been in business since 2014 and was founded in Irvine, California. For more information on CoreVest or if you would like 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 its website and clicking on the “Get Started” button, which takes you through a short quiz about the type of financing you’re seeking. You can also email them from the site or fill out a contact form, and a representative will get back to you usually within 24 hours.
Best Alternative Portfolio Lender: Visio Lending
Visio Lending is the best alternative portfolio lender for long-term or permanent portfolio loans because it specializes in these types of loans. It is the only portfolio lender on the list that only lends on loan-to-value ratio (LTV) and not after repair value (ARV). Visio has bought, sold or financed more than $275 million in residential real estate nationwide. It offers several portfolio loans with different rates and terms. It’s right for a buy-and-hold investor who wants permanent financing on an investment property.
Types of Portfolio Loans Offered By Visio Lending
Visio Lending offers the following types of portfolio loans:
- Rental 360 loan: 7/1 adjustable-rate mortgage (ARM) or 30-year fixed loan for an investment property
- Rental 360 portfolio loan: Refinance on 3-7 properties at once with a 7/1 ARM or a 30-year fixed loan
- Bridge loan: 24-month, interest-only, short-term loan
Visio Lending offers different rates, terms and qualifications for each of its different types of loans. Its rates are competitive with Lima One Capital and vary depending on the borrower’s qualifications and the type of property being financed. Generally, it focuses on loans with longer terms but also offer one loan product with a 24-month term.
Visio Lending Portfolio Loan Rates & Costs
Visio Lending offers the following costs:
- Rate: 7.5%-12.5% fixed or variable
- Loan origination fees: 1.5%-2.5%
- Closing costs: 2%-5%
- Prepayment penalty: None on bridge loan; other loans depend on borrower’s qualifications
Visio’s loan origination fees are similar to CoreVest, and its closing costs are the same as the other portfolio lenders on our list.
Visio Lending Portfolio Loan Terms
Visio Lending offers portfolio mortgages with the following terms:
- Terms for one rental property: 30 years
- Terms for multiple property loans: 30 years
- Terms for bridge loans: 2 years
- Loan amounts: $75,000-$2 million but will go as low as $45,000 on some deals; will consider deals of more than $2 million as well
The bridge loans are short-term interest-only financing. The rental property loans are long-term fixed or variable rate financing.
Visio Lending Portfolio Loan Qualifications
Visio Lending has the following qualifications for its portfolio loans:
- Credit score: 650+ (check yours free here)
- DSCR: 1.0-1.5+
- Stable occupancy: Depends on the project
- Cash reserves: 2+ months
This means it’s lending based on the current condition of the property and not the future repair value of the property. It bases its qualifications more on the deal than on the individual borrower.
What Visio Lending is Missing
Visio Lending does a good job of tailoring loans toward long-term residential real estate investors. However, if you’re looking for a commercial loan with a high loan amount, this is not the right lender for you. Instead, try CoreVest or PGIM Real Estate Finance.
Visio Lending Customer Reviews
Visio Lending has an A+ rating with the Better Business Bureau, and it has 3.68 out of 5 stars based on two customer reviews. For more reviews on Visio Lending, check out our Visio Lending reviews.
How to Apply With Visio Lending
You can apply for a mortgage loan with Visio Lending by visiting its website and using its online application based on the type of loan you’re seeking. You can also fill out a contact form and a representative will contact you, or you can email them directly from the site.
Best Portfolio Lender for Fix-and-Flip Investors: Lima One Capital
Lima One Capital is a portfolio lender that offers a wide variety of portfolio loans, including four different loans for fix and flippers, so it’s a good alternative to CoreVest. Lima One Capital has raised more than $1 billion in capital from institutional investors. It’s best for investors with high FICO scores because its minimum credit score requirement is 660 or higher.
Types of Portfolio Loans Offered By Lima One Capital
Lima One Capital offers the following types of portfolio loans:
- Fix-and-flip loans: $50,000-$4 million; it finances the purchase and renovation of a property
- Term loans: $50,000-$4 million for 1-4 unit properties
- Multifamily loans: $50,000-$4 million on 5+ unit properties
This is the widest variety of loans on our list of best portfolio lenders. Fix-and-flip loans offered include purchase-only, rehab, construction loans and cash-out refinances. This range of options can help an investor make money flipping houses.
Lima One Capital Portfolio Loan Rates & Costs
Lima One Capital offers the following costs:
- Rate: 5%-12%
- Loan origination fees: 0%-1%
- Closing costs: 2%-5%
- Prepayment penalty: 0%-1%
Lima One Capital offers lower interest rates on its term loans and multifamily loans and higher interest rates on its fix-and-flip loans. For example, fix-and-flip interest rates are between 8 percent and 12 percent while its other loans typically have rates between 5 percent and 8 percent. Furthermore, the interest payments on its term and multifamily loans are typically fully amortized while fix-and-flip loans typically have interest-only payments.
Lima One Capital Portfolio Loan Terms
Lima One Capital offers the following terms:
- Terms for 1-4 units: 30 years
- Terms for multifamily loans: 30 years
- Terms for fix-and-flip loans: 1-2 years
- Prepayment penalty: None
- Loan amounts: $50,000-$4 million
- LTV: Up to 90%
- ARV: Up to 70%
Lima One Capital will finance up to 90 percent of a fix-and-flip project’s LTV or up to 70 percent of a project’s purchase price plus renovation budget. For its term loans and multifamily loans, it will finance 75 percent of a property’s LTV ratio.
Lima One Capital Portfolio Loan Qualifications
Lima One Capital has the following portfolio loan qualifications:
- Credit Score: 660+ (check yours free here)
- DSCR: 1.25+
- Stable occupancy: 3+ months at 90% occupancy
- Cash reserves: 6+ months
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 doesn’t offer blanket loans, so if that’s what you’re in the market for, it’s not the right lender for you.
Lima One Capital Customer Reviews
Lima One Capital has an A+ rating with the Better Business Bureau and has received 4.3 out of five 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
You can apply with Lima One Capital by visiting its website and clicking on the “Apply Now” button. You can also email the lender through the site, and it has more than 60 employees who offer dedicated customer service and support for all of its loans.
Best Portfolio Lender for Multifamily Properties: LendingOne
LendingOne is the best portfolio lender for multifamily properties because its loan products, like its multifamily bridge loans, are specially designed for these types of investors. It also offers a variety of other portfolio loans, including fix-and-flip and investment property loans. LendingOne and its affiliates have invested more than $500 million dollars in different real estate projects. They’re right for investors who want to purchase multifamily properties and fix and flips.
Types of Portfolio Loans Offered By LendingOne
LendingOne offers the following types of portfolio loans:
- Fix-and-flip loans: Short-term loans to compete with cash buyers
- Rental loans: Long-term buy and hold loans for investment property
- Rehab-to-rent loans: Rehab loans for rental properties
- Multifamily bridge loans: Temporary financing for 2-40 units
LendingOne offers a wide variety of portfolio loans, similar to CoreVest. It caters to residential and commercial investors as well as short-term and long-term investors.
LendingOne Portfolio Loan Rates & Costs
LendingOne comes with the following costs:
- Rate: 5.4%-12.0% fixed or variable
- Loan origination fees: Depends on the deal
- Closing costs: 2%-5%
- Prepayment penalty: 80% of 6 months interest within first 3 years
LendingOne offers rates that fall in the same range as most of the other lenders including CoreVest. Its closing costs are the same as all of the other portfolio lenders, which is pretty standard.
LendingOne Portfolio Terms
LendingOne offers portfolio loans with the following terms:
- Terms for rental loans: 30 years
- Terms for multifamily bridge loans: 1-3 years
- Terms for fix-and-flip loans: 12 months
- Loan amounts for single-family properties: $75,000-$4 million
- Loan amounts for multifamily properties: $75,000-$4 million
- Loan amounts for multifamily bridge loans: $2 million-$10 million
Its rehab-to-rent loans start out as a short fix-and-flip loan and then rolls over into a permanent 30-year loan.
LendingOne Portfolio Loan Qualifications
LendingOne offers the following qualifications:
- Credit score: 620+ (check yours free here)
- DSCR: No DSCR restrictions
- Occupancy: 3+ months stable occupancy at 90%
- Cash reserves: 6+ months
LendingOne is the only lender to have no debt service ratio restrictions on its portfolio loans.
What LendingOne is Missing
LendingOne offers many portfolio loan options; however, it only offers loans up to $10 million, which is much lower than the other lenders in this article.
LendingOne Customer Reviews
LendingOne has an A+ rating with the Better Business Bureau but doesn’t have reviews on the site. For more information on LendingOne, check out our LendingOne reviews.
How to Apply With LendingOne
You can apply with LendingOne on its website by clicking on the “Apply Now” button and going through the pre-qualification process, which only takes a few minutes. Alternatively, you can contact the lender directly through the site and a representative will get back to you.
Best Portfolio Lender for Large Loan Amounts Up to $200 Million: PGIM Real Estate Finance
PGIM Real Estate Finance is our top choice for large portfolio loans with limits of $200 million. It’s one of the largest commercial lenders in the industry and has more than $91.2 billion assets under management and administration. Its loans include blanket mortgages, multifamily loans and term loans. PGIM Real Estate Finance is the right lender for large investors who need loans between $5 million and $200 million.
Types of Portfolio Loans Offered By PGIM Real Estate Finance
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 1-4 units
- Multifamily loans: Offers multifamily financing for properties with 5+ units
PGIM Real Estate Finance Portfolio Loan Rates & Costs
PGIM Real Estate Finance costs include:
- Rate: 5%-8% fixed or variable
- Loan origination fees: 0%-1%
- Closing costs: 2%-5%
- Prepayment penalty: 1%
PGIM Real Estate Finance, like CoreVest, has interest rates that range from 5 percent to 8 percent. Interest rates are typically higher for shorter terms and lower loan amounts and lower for longer terms and 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 1-4 units: 3-20 years
- Terms for general purpose loans for 5+ units: 3-20 years
- Loan amounts: $5 million-$200 million
PGIM Real Estate Finance is unique on our list of top portfolio lenders because it offers general-purpose portfolio loans with terms between three and 20 years. It’s a large portfolio lender that offers the highest loan amounts on our list. Its loan amounts range from $5 million to $200 million, which is double the maximum of CoreVest, which has the next highest amount.
PGIM Real Estate Finance Portfolio Loan Qualifications
Qualifications for PGIM Real Estate Finance portfolio loans include:
- Credit score: 660+ (check yours free here)
- DSCR: 1.25+
- Occupancy: 3+ months stable occupancy at 90%
- Cash reserves: 6+ months
Their 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 lenders on our list.
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 $5 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. If you have worked with PGIM and would like to leave a review, please contact us.
How to Apply With PGIM Real Estate Finance
You can apply for a portfolio loan with PGIM Real Estate Finance on its 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 to you.
Visit PGIM Real Estate Finance
The Bottom Line
Real estate portfolio lenders issue loans that remain on their balance sheet as an investment. Their loans can be both short-term and permanent and are a great option for real estate investments. We looked at the available portfolio lenders and chose our top five portfolio lenders based on their reputations, rates, terms, costs and customer service offerings. In the end, we decided CoreVest was the best portfolio lender due to its diverse option of loans.
CoreVest is our choice for the best portfolio lender for 2018. It offers short-term bridge loans, lines of credit and longer-term permanent loans. They can finance One to five or more unit properties and can get most loans funded within 30 to 45 days. Get pre-qualified online today.
Terry
Very helpful article, Evan. I’ve been recently investigating portfolio loans and it feels somewhat like shopping for a car! Every company seems to have their own nuances and it’s hard to make good comparisons. We’re looking at picking up rental #6 and have hit “the wall” with traditional mortgages/banks. Portfolio lending sounds like it will be our solution. Any other resources you can recommend for someone to learn more about this topic?
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Hi Terry. Allison here, I’m a real estate investing writer at fitsmallbusiness. Thank you for reading the article and I’m glad it was helpful. Congrats on rental #6 and yes portfolio loans are intended for investors with multiple properties like yourself. Check out our article on portfolio lending for more information. https://fitsmallbusiness.com/portfolio-loan-mortgages/
Hope that helps.
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Isaac Stokes
That was amazing Evan, thanks! I guess Visio is good too?
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Hi Issac,
Thanks for the kind words and I’m glad you got a chance to read the article. I’m actually not personally familiar with Viso Lending. However, I checked out their site and they seem to be a legitimate portfolio lending option at first blush.
It looks like they specialize in long-term loans for landlords and real estate investors. Notice that they don’t offer any fix-and-flip loans though. Lima One in our article offers similar long-term loans to Visio, as well as short-term loans for fix and flip investors.
I would reach out to them if you’re looking for either a short-term or more permanent investment property loan. However, if you’re already in talks with Visio, it seems like they would be a good option, too. Of course, you’ll have to do your own due diligence and speak to legal and/or tax professionals before making a decision.
Hope this helps,
Evan
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Lois
Excellent comparison, Thank you!
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Thanks Lois!
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