Portfolio Loans And Specialty Mortgage Loans
Portfolio loans are mortgage loans that do not qualify for conventional financing and are mortgage loans that are held by the lender’s own portfolio. Most portfolio loans are adjustable rate mortgage products ( ARM ) which are amortized over 30 years. They are not balloon mortgages and are 30 year amortized mortgage loans. For example, a 7/1 ARM loan has a fixed mortgage rate for the first 7 years and adjusts every year for the remaining 30 years. Portfolio loans are based on an index plus a margin. The margin is always constant and the index is based on either the Libor, COFI, CMT, or other index the portfolio lender decides on prior to issuing the mortgage loan commitment.
Condotel Mortgage Loans
Condotel mortgage loans are portfolio loans that are very popular. Condotel financing is one of my specialties. I can offer condotel purchase loans, condotel refinance loans, and condotel cashout refinance loans. Minimum credit score requirements for condotel mortgage loans for condotel mortgage loan borrowers are 680 FICO with no late payment history in the past 12 years . The maximum loan to value is 75% on condotel purchase loans, condotel refinance loans, and condotel cashout refinance loans for first and second homes. The condotel unit needs to have at least one bedroom and a functional kitchen in order to qualify. The condotel project has to be financially sound and cannot have any current major building violations nor any pending major lawsuits.
Investment Condotel Financing
For investment condotel financing, the maximum loan to value requirement is 60% LTV. The 60% loan to value requirement is for investment condotel purchase loans, investment condotel refinance loans, and investment condotel cashout refinance loans.
Non-Warrantable Condo Portfolio Loans
I can offer non-warrantable condo portfolio loans throughout the United States. The maximum loan to value for non-warrantable condo portfolio loans is 80% LTV. They are 30 year adjustable rate mortgages. There are 3/1 ARM, 5/1 ARM, and 7/1 ARM portfolio loans and the index is based on the one year CMT and the margin is set at a constant 3%. There are no prepayment penalty. Minimum credit scores for non-warrantable condo portfolio loans is for the borrower to have at least a 680 FICO score and the maximum back end debt to income ratio for the mortgage loan borrower cannot be greater than 40%. Non-warrantable condo portfolio loans are extremely popular throughout the United States, but especially in Florida, California, Texas, Indiana, Kentucky, and Illinois.
Properties That Cannot Get Conventional Financing
If you cannot get conventional financing, portfolio loans may be the route to go. There are many reasons why you might not qualify for a conventional loan. It may be because of the property or it may be because of the mortgage loan borrower that you do not qualify for a conventional loan. Portfolio loans are mortgage loans held by the lender and not sold on the secondary market so portfolio lenders are much more lenient and open minded when qualifying the mortgage loan borrower or the subject property.