The best portfolio lenders can offer financing for real estate with low rates and flexible qualification requirements. They should also have multiple loan offerings, such as bridge loans, construction financing, and rehab loans. Although portfolio loans tend to have higher rates than traditional financing options, they can be a good fit for borrowers who are unable to get financing elsewhere or are seeking customized loan terms.
The best portfolio loan will vary based on your circumstances, so we’ve selected lenders with a wide range of financing options. We’ve compiled a list of the best portfolio mortgage lenders:
- Kiavi: Best overall for rates, terms, and customer service
- Lima One Capital: Best for large funding needs
- Visio Lending: Best easy loans for vacation rentals
- RCN Capital: Best fix and flip loans for experienced investors
- North American Savings Bank: Best for multiple loan types
- LendingOne: Best for fix-to-rent investors
- CoreVest: Best for borrowers with low credit scores
Best Portfolio Lenders at a Glance
Portfolio loans can be structured in a number of different ways, and the best one will depend on your business circumstances and goals. You can read our guide on portfolio loan types, rates, and terms to learn more.
Kiavi: Best Overall for Rates, Terms & Customer Service
Kiavi lends in Washington, D.C., and 32 states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin, and West Virginia.
Why We Like Kiavi
Kiavi offers the best overall combination of favorable rates and loan terms across various loan programs. It also delivers a high level of service, evidenced by the fact that 82% of its transactions are with repeat customers.
Its bridge loans, or fix and flip loans, are a good short-term financing option for borrowers who intend on conducting repairs to a property to resell in under two years. Its DSCR rental loan program is a good way for borrowers to qualify based on the monthly rental income of a property, with less emphasis on traditional factors such as credit scores and wage income. Finally, its rental portfolio loan program can be used if you have five or more rental properties and want to combine the payments into a single loan to simplify your finances.
Depending on the loan program you choose, closings could occur in as little as 10 days. This is possible thanks to the reduced documentation requirements for many of its loans, which helps speed up the loan review and approval process. Kiavi’s bridge loans, for instance, can be completed with no appraisal and no income verification. Similarly, its DSCR loans require no tax returns or personal income documents.
One downside with Kiavi is that it does not lend in all 50 states, so you’ll want to check availability before getting too far into the lending process. To learn more or to apply, visit the Kiavi website.
Lima One Capital: Best for Large Funding Needs
Why We Like Lima One Capital
Lima One Capital is the only lender in our guide with no specified maximum loan amount. This makes it a good option if you have large funding needs and can afford the monthly payments. With that being said, the specific terms offered will vary based on the loan program you choose.
The lender has a wide range of programs. For instance, its fix and flip loans include short- and long-term financing to cater to both fix-and-hold and fix-to-rent investors. Similarly, its long-term rental program includes portfolio rental loans for two or more properties and has no maximum loan amount or unit count.
Given the number of loan programs offered, we recommend contacting the company to get assistance or confirmation as to the program most ideal for your needs and goals. You can head over to the Lima One Capital website to find the company’s contact information. If you want to get the process started, you can also complete a short online questionnaire to receive a return phone call.
Visio Lending: Best Easy Loans for Vacation Rentals
Visio Lending is available in Washington, D.C., and 38 states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Why We Like Visio Lending
Visio Lending is an excellent option if you want to purchase or refinance a vacation rental property. Compared to a traditional mortgage loan, it can be easier to get approved because this provider evaluates applications primarily based on your credit history and the property’s cash flow rather than your personal income.
Since your personal income does not impact your odds of approval, it’s a good option for self-employed borrowers who may not otherwise qualify for a loan. This can be the case with individuals who write off a large amount of business expenses. Doing so can reduce a borrower’s tax liability, but it often hurts their chances of getting approved for a conventional mortgage loan.
Before you apply, you should ensure Visio Lending offers financing for your location. Applications cannot be submitted online, but you can complete an online form requesting a callback from a representative.
RCN Capital: Best Fix and Flip Loans for Experienced Investors
Why We Like RCN Capital
RCN Capital offers several different types of loan programs but retains only its fix and flip/bridge loans in-house as portfolio loans. We’ve selected it as the best option for experienced investors because its starting interest rates and terms are tied to the level of experience you have. As you’ll see in the table below, more experienced investors can qualify for more beneficial rates and loan terms.
Eligible property types include non-owner occupied 1-4 family homes, condominiums, townhomes, mixed-use properties, and 5+ unit apartments. Depending on the type of property being financed, it must also have a minimum as-is appraised value. Single-family homes require a minimum value of $50,000, 2-4 unit properties require $25,000 per unit, and mixed-use and 5+ unit homes require at least $35,000 per unit.
Other programs offered include long-term rental loans, new construction, and rental portfolio loans. However, borrowers should be aware that RCN Capital sells off its long-term 30-year loans to outside investors once the loan has been funded.
To learn more or to apply, visit the RCN Capital website.
North American Savings Bank: Best for Multiple Loan Types
Why We Like North American Savings Bank
North American Savings Bank (NASB) offers a wide variety of non-QM loans. These are loans that allow you to qualify with less traditional methods such as bank statements or assets, as opposed to evaluating your income. If you have been unable to get approved elsewhere, this provider offers many specialty programs that may be right for you.
Some examples of this provider’s non-QM loan programs include:
- Bank statement loans
- DSCR loans
- Jumbo loans
- FLEX loans
- Bridge loans
- Asset depletion loans
- 1099 mortgage loans
- Non-warrantable condo loans
Each program offers added flexibility to help you get approved. Depending on the program, the lender may be able to consider less traditional sources of income or allow additional options for borrowers with recent bankruptcies. For instance, its non-warrantable condo loans can help you get financing on a property that may otherwise be ineligible under a conventional mortgage loan. Similarly, an asset depletion loan can allow you to qualify by using your assets rather than your income.
Due to the number of loan programs available through this provider, it can be difficult to pinpoint the exact eligibility criteria. We recommend contacting the bank to have a lending specialist walk you through the process and help you choose the program best suited for your needs. You can also read our article on how to get a small business loan for what to expect and tips on how to improve your chances of getting approved.
You can view the contact information for NASB’s lending team members on the website, where you’ll also have the option to submit an online application.
LendingOne: Best for Fix-to-Rent Investors
Why We Like LendingOne
If you need to conduct repairs to a property but intend to retain it as a long-term rental, consider LendingOne. It offers competitive rates on its short-term fix-to-rent loan. Once repairs are completed, you can transition to its permanent 30-year rental loan.
Using the company for both short- and long-term loans is not required. However, it can save you time and money because it will have already reviewed your qualifications as part of the initial approval process for the short-term loan. Since the lender requires far less documentation than a conventional mortgage loan, you can get approved and funded in as little as 10 days.
The provider finances single-family homes and two- to four-unit properties. It also offers loan programs for new construction, multifamily bridge, portfolio rentals, and more. To learn more or apply, visit the LendingOne website and obtain an online quote in less than 2 minutes.
CoreVest: Best for Borrowers with Low Credit Scores
Why We Like CoreVest
CoreVest has no minimum credit score, making it a great option if you have bad credit. It considers all aspects of your loan application in determining whether you can qualify for a loan, such as your business finances, track record, and overall experience.
One potential downside with this provider is the fact that its funding speed is slower than many others on our list. Closing costs can also be expensive, but you won’t know the exact costs until after you apply and have your application reviewed by the lender.
From a qualification perspective, CoreVest will primarily review your business history, liquidity levels, and credit profile. It’s recommended that you have at least three prior completed flips or rental properties. Borrowers who are weak in one or more areas should have other strengths to improve their chances of getting approved. For example, a lower credit score might be offset by documenting a strong DSCR or track record of stable cash flow.
To learn more about its loan offerings, you can submit an online request form or contact a representative to discuss your options.
How We Chose the Best Portfolio Lenders
The best portfolio lenders were selected using the following criteria:
- Interest rates and estimated APRs
- Qualification requirements
- Repayment terms
- Application and documentation requirements
- Number of loan programs offered
- Maximum loan amounts
- Customer reviews and ratings
Alternatives to a Portfolio Loan
The best portfolio lenders typically have more flexible qualification requirements. However, if you’re still unable to get approved, here are some other sources of funding you can consider.
- Hard money loan: This can be a good option if you just need short-term financing for a fix-and-flip or fix-and-hold property. Check out our recommendations for the best hard money lenders.
- Loan from friends and family: Borrowing money from friends or family can be easier to get since you won’t have to meet a lender’s typical qualification requirements. However, you will likely need to make a strong case that investing in your business is worth the risk. For more information, you can read our guide on raising money from friends and family to fund your business.
- Business line of credit: If you need funding to pay for repairs or upgrades to a property, a business line of credit can be useful. You can request funds on an as-needed basis during the draw period and repay the loan balance as you use it. It can be easier to get since a property’s condition and value are not considered in the loan evaluation process. See our list of the best small business lines of credit.
- Home equity line of credit (HELOC): A HELOC is a revolving credit facility that allows the borrower to request a draw on the line, have the funds deposited into an account of choice, and use the funds as needed. The balance can be repaid over time and utilized on a recurring basis. Its lending limit is attached to the value of the borrower’s home, making it an ideal option for those ineligible for business financing. Read our guide on using a HELOC to fund your business to learn more.
There are numerous commercial real estate loan options available outside of portfolio loans. If you’re looking for financing options to purchase commercial real estate (CRE), it’s important to know that rates can fluctuate daily. You can learn more about how rates are determined in our guide on CRE rates.
Frequently Asked Questions (FAQs)
Depending on your business needs, a portfolio loan can be a good option to help you finance various real estate investments. Keep in mind that it is prone to have higher interest rates and fees than other traditional business loans, so be sure it fits your budget and business needs before proceeding with the application process.
Portfolio lenders are financial institutions that keep the loans they originate on their books, meaning they won’t sell your mortgage to another lending institution in the secondary market. Lenders can include banks, mortgage companies, and other online lenders.
Qualification requirements will vary depending on the criteria defined by the lender. Some may be more lenient than others and accept as low as 600. However, to increase your chances of approval, most lenders will want to see a score of 650 and above.
Bottom Line
The best portfolio mortgage lenders will offer various financing options, flexible qualification requirements, and favorable rates and terms. When considering a portfolio loan for your investment needs, keep in mind that it may be more expensive in the long run. Be sure to budget accordingly, and weigh all financing alternatives from various lenders before proceeding.
