A portfolio loan, also known as a blanket loan, is a type of loan that is used to fund the purchase of multiple pieces of property. Portfolio loans are popular with real estate investors purchasing several single-family residences, condos, or townhomes for the purpose of generating rental income. When an investor purchases real estate for rental use like this, it’s called a “buy & hold” investment, which is opposite of a fix & flip investment strategy. If 5 or more rental units are purchased in the portfolio, that is considered a commercial investment mortgage.
Alternative financing is commonly used for portfolio loans for a variety of reasons. Foreign Nationals who are new to the US usually don’t have income history or credit established in the United States, so they don’t qualify for traditional loans. Many times, condos are deemed “non-warrantable” because the complex or homeowner’s association does not meet the Fannie Mae, Freddie Mac, or FHA condo guidelines, so they are great candidates for portfolio loans. Even successful real estate investors face challenges when attempting to grow their investment portfolios beyond what a conventional loan will cover. With a portfolio loan, you can have an unlimited number of financed properties!
Additionally, the Blackhawk network of investors provides peer-to-peer mortgage loans based on the numbers in the deal instead of your credit. Since loans are secured on the real property itself (aka asset-based lending), high credit scores are not required to get matched with the right lender(s). Homebuyers can borrow up to 80% LTV (loan-to-value ratio) with pledged assets. Borrowers can even choose to makes payments only on the interest on their investment mortgage, rather than the principle and the interest that traditional mortgages require.
Common property types suitable for real estate investment loans (3 or more):
- Single Family Residences (SFRs)
- 2-4 Units (Duplex/Fourplex)
Our general guidelines for real estate investment loans:
- The property is a suitable type and quantity to qualify for a portfolio loan
- The property is in the United States (includes Alaska & Hawaii)
- The property Loan To Value (LTV) ratio is up to 80%
- The loan is for a purchase or a refinance
- The loan amount is between $100,000 and $100 Million
- The loan term is between 1 to 10 years
Why Blackhawk is a preferred solution for real estate investment loans:
- The borrower makes interest only payments
- Loans are approved based on stated income and bank statements only
- There are no minimum FICO requirements
- We provide non-recourse, secured loans
- We offer pre-payment flexibility
- We offer loans to foreign nationals
Our unique automated matching platform is fine-tuned to broker the right borrower with the right lender, in a short amount of time and with a very straightforward process. If you are interested in a real estate investment loan, please apply today, or if you would like to invest in our peer to peer mortgage loans, please register as a lender!