October 1, 2024 • 17 mins
In this episode of Daily Mortgage Rates LIVE!, we’re diving deep into the intriguing world of blanket (portfolio) loans. If you’re an investor managing multiple properties, this financing solution could be your ultimate key to streamlining your investment strategy. Join us as we explore how blanket loans consolidate multiple mortgages into one, simplifying your financing and potentially saving you both time and money.
We'll discuss the unique benefits of blanket loans, such as increased flexibility and easier management of your real estate portfolio, along with potential pitfalls to watch out for.
Tune in to discover how blanket loans can empower you to take your real estate ventures to the next level! Don’t miss out on the insights that could transform your investment approach.
For more episodes visit: https://themortgagecalculator.com/Page/Daily-Mortgage-Rates-LIVE-Video-Podcast
About The Mortgage Calculator:
The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation!
Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!
Our team of over 350 licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages, P&L Mortgages, Asset Based Mortgage Programs, No Ratio CDFI Loan Programs, DSCR Inve
The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!
Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!
Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgag
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Restream recording Oct 01, (00:00):
All right.
(00:00):
Welcome everyone.
My name is Kyle Hiersche.
I'm the COO of the mortgagecalculator joined here by our
president, Nick Hiersche, andour CSO, Jose Gonzalez.
We are a lender that specializesin non QM loans and what we do
every weekday at 11 a.
m.
Eastern on the show is gothrough our actual live mortgage
rates.
And then we do a deep dive intoa different loan type and
today's loan type.
There's going to be blanketloans, AKA portfolio loans.
(00:20):
So we'll go through those hereshortly.
But first we'll pull up ourrates.
So Nick, if you're ready, let'sgo ahead and pull up today's
live rates and see what theylook like this morning.
Right.
So a little bit of change fromyesterday's news, but we'll go
ahead and check out the ratesfor today.
(00:41):
It is October 1st, just after 11a.
m.
Eastern.
So all of our standard programshave their initial rate sheets
for today.
We will compare a standardscenario and compare the APR
across the programs.
If you'd like a full breakdownand itemized loan estimate of
all the fees that go into theAPR, please do it with our team
members.
They'd be happy to send oneover.
For the demo, as we do everyday, we'll set up a standard
(01:01):
scenario, single family home,500, 000 purchase, 400, 000 loan
amount.
That corresponds to 80 percentloan, 20 percent down payment.
Use an estimated 760 FIFO creditscore and an estimated 40
percent debt to income ratio.
So, let's check the rates fortoday.
Uh, looks like it just went upjust a tick from yesterday.
(01:24):
First up, our 30 year fixconventional for a primary home,
typically the most common optionpeople think of when they think
of a mortgage.
Rate as low as 5.
875.
Final APR, 6.
171.
So, ticked up just a touch over6.
We were just a touch under 6yesterday.
And if for any reason ourcustomers don't qualify for a
conventional option, youtypically want to quote a FHA
(01:45):
option to compare.
FHA allows more leniency oncredit issues and a higher
overall debt to income ratio,but it does require upfront and
yearly mortgage insurance.
4.
99 is the rate, and if I'm likeyou are with all of the mortgage
insurance and fees, 5.
912.
So notice if our customerqualifies for both programs,
they may consider FHA if they'rewilling to do that mortgage
(02:06):
insurance.
And our customers that need touse it, definitely a good
option.
Very comparable and conventionalat the moment.
And moving on to our VA is forour eligible vets and active
service members are eligible forVA loans rates as low as 5.125
final A PR 5.41 of four with astandard funding fee there.
And when we compare, VAs goingto always be the best option for
(02:29):
our eligible vets and servicemembers, and we compare to other
programs.
And the final standard optionhere, USDA is only for
properties in USDA eligibleareas.
That's the rural areas of thecountry.
The property is eligible and theborrower is eligible.
These are great to consider.
It's as low as 4.
99 final APR with standard fee5.
(02:50):
728.
So when we compare that to FHA,if our borrowers are shopping in
a rural area, USDA is going todefinitely be a better option
and better option thanconventional as well.
So definitely look for thoseprograms if you're looking in
those rural areas.
And moving on to our non QMoptions, many other banks or
lenders would have to deny ourcustomer.
(03:11):
Unfortunately, we have 5, 000other options here with our non
QM alt doc.
So if a customer doesn't qualifyfor standard documents for
conventional FHA, et cetera,using two years of tax returns,
needs to switch to alternativedocumentation, we can use bank
statements, 1099s, assetrelated, P& L, all kinds of
different options.
Bank statement option coming intoday, 6.
(03:31):
00, and final APR, 6.
297, so just a touch aboveconventional to switch to all
docs, which is amazing.
And we have tons of otheroptions here for investment
properties.
First up are non QM alt docoptions, so bank statement or
similar for investmentproperties coming in at 6.
5, right?
(03:52):
Final APR, 6.
823, and let's compare that tothe other investment options.
Conventional today is our onlystandard option.
Remember government programs,USDA, FHA, VA do not work for
investments.
So we'll compare that to thestandard conventional 6.
25 rate final APR 6.
(04:14):
581, which is cheaper than theall doc option, which is
typical, but not cheaper thanour favorite loans.
DSCR stands for debt servicecoverage ratio.
Don't even need any incomeinformation or employment
information from our borrowers.
We simply use the estimatedrents from the appraisal to
determine the DSCR ratio.
The estimated rents can coverthe estimated expenses, aka the
(04:36):
property cash flows monthly.
That's a DSCR ratio of one orhigher, which is preferred.
And this option here we'relooking at is our three year
prepayment penalty option.
Rates coming in today, 6.
125.
Final APR, 6.
450.
Beating conventional, absolutelyamazing.
And some of our programs allow afive year prepay to sweeten deal
even more with a five yearprepayment penalty.
(04:58):
We can drop the rates as low as5.
875.
Amazing.
Final APR 6.
169.
So definitely the best optionthere for our investors.
And we do have a no prepaymentpenalty option as well.
Some states don't allow it andsome investors don't want it.
That's not a problem.
Rates as low as 6.
5.
Final APR 6.
(05:18):
823.
Which is just a touch higherthan conventional.
I would still say most investorswould prefer a DSCR option.
And the final two options aresecond mortgage options here are
very popular as are many of ourclients have a low rate first
mortgage lower than what we'relooking at here and they still
want to get cash out and thebest way to do that is a second
(05:40):
mortgage or a key lock is thetraditional option.
But these fixed rate secondmortgages are our favorite
options here.
Great.
For a primary home, we can getcash out rates as low as 8.125,
file a PR 8.527.
Much lower rates than HELOCs,and obviously these are fixed
instead of adjustable.
And we can use the same programfor our investors, which is very
(06:01):
rare.
For HELOCs, we can get ourinvestment properties, cash out
rates as low as 9.25, file a PR9.557 without touching that
first mortgage.
And these are both non QMprograms as well, so we can use
bank statements, 10 90 nines, etcetera.
Let's go ahead and switch backover to today's topic definitely
(06:21):
a unique twist that we can't doin our live pricing a Blanket or
portfolio loan is a loan formultiple properties under one
loan a common request for ourinvestors so Jose before we
check out the options, let'stalk about why we would use this
and Particularly why we wouldnot it's very common
misconception there that this isIt's a preferred option when
(06:43):
typically it's the option of,uh, for only a specific set of
circumstances.
So let's check these out.
Great.
Good morning, everyone.
Thank you for joining us fordaily mortgage rates live with
the mortgage calculator.
Uh, first let's get into, excuseme, what a blanket loan is.
Uh, commonly known as aportfolio loan, but we don't
like to use that phrase becauseportfolio loans could be
(07:05):
misconstrued as a loan that alender makes and keeps in their
portfolio and doesn't sell.
A blanket loan is a loan that isfor multiple Individually titled
properties all under one loan.
That's why they call it ablanket loan.
So you could have 10, let's sayfor example, 10, uh, one to four
(07:25):
unit properties, uh, in the samestate being purchased from the
same seller, uh, could bepurchased with a blanket loan
or, uh, also, uh, 10 propertiesall owned by the same borrower
being refinanced where they'reall also in the same state.
That's a very critical.
Because, uh, lending laws changefrom state to state, so you
(07:49):
cannot commingle, for example,properties in Florida with
properties in Georgia.
on the same loan.
So we've covered what a blanketloan is, uh, when it, and uh,
now when would you use a blanketloan, right?
Uh, one of the commonmisconceptions is that the
blanket loan will have a muchlower closing costs.
(08:13):
Now there, there may be somesavings in terms of, for
example, individual underwritingfees that are assessed against
each, on each loan.
Right.
If you have 10 properties andyou finance them individually,
you're going to have 10underwriting fees, but at the
same time, you're, that's going,that savings is going to be
offset by some of the fees.
(08:35):
Uh, put on to blanket loanslike, uh, the property review
fees.
If you have one to fiveproperties, it's a certain fee.
You have, uh, you know, six to10 properties is a certain fee.
Uh, you have funding fees,closing fees.
So different fees that areassociated with the underwriter
and lender having to reviewmultiple property packages for
(08:58):
one loan.
And there also will be, um,Individual title policies that
are going to be taken outbecause each property's title is
going to have to be reviewed.
You may save a little bit on theclosing fee because you're only
going to have one closinginstead of 10 closings, but then
again, those are nominalsavings.
(09:20):
You also have to be aware ofthat.
That, um, now when you wouldreally want to use or the case,
I should say, where the blanketloan is most popular is when
you're trying to finance, uh, abunch of properties with low
dollar values, uh, we haveoptions that go as low as 50,
000 in loan amount, uh,allocated to each property.
(09:44):
And we have others that have aminimum loan amount of 100, 000,
excuse me, minimum property.
Thank you.
the value of 100, 000 perproperty.
Uh, those are the two commonones that we have for the
blanket loans.
So typically the investors aregoing to, they're going to buy
10, 15 properties of 000.
The only way to really get tofinance those properties would
(10:06):
be through a blanket loan.
Maybe you could find hard moneysomewhere, but you're really not
going to find a DSCR loans for50, 000.
But you can get two or threeproperties under one blanket
loan.
of where you where each isgetting allocated a fifty
thousand dollar loan amount andwe would perfectly be able to
close that loan.
(10:27):
So be aware when it's good, uh,and also be aware that blanket
loans may have restrictionsbeing able to individually, um,
uh, transact properties out ofthe blanket loan.
What I mean by that, that'scalled the carve out And which
(10:47):
is when you have, let's say fiveproperties in a blanket loan,
and all of a sudden somebodymakes you an offer, you can't
refuse on one of the properties,and now you want to sell it and
get it out of the blanket loan,you would have to make sure that
the blanket loan, uh, allows fora carve out because if it does
not allow for a carve out, whichmeans removing one property out
(11:08):
of the portfolio, then inessence, to be able to sell that
one property, You would have to,uh, refinance out of the blanket
loan, maybe by individuallyrefinancing each of the
properties, but do be awarethat, uh, that would be one of
the biggest issues.
If you do not bring it up toyour borrower is carve out.
So make sure you cover carveouts and if they're fine with
(11:31):
that, then, uh, full speedahead.
So let's go ahead and, uh, shareour options, uh, This morning
for you, uh, maximum loan tovalue, uh, for a blanket loan
purchase that we have is 80percent LTV.
Um, so this example here is I'massuming seven 40 plus credit
(11:51):
score, which will allow me to go80 percent LTV, uh, with the
best pricing and here we have 6.
876 percent at a cost of onepoint.
For this, uh, DSER blanket loan,80% LTV, the max.
(12:12):
Now when the credit score dropsto six 80, so six 80 to 6 99,
uh, it is 70%, 75% LTV, sobasically below 700, 6 80 to 6
99, you, it is maximum 75% LTV,and you're looking at seven.
(12:33):
0.
376 percent at a cost of onepoint.
Now in the pricing example thatI gave today, um, I priced them
all out with one loan discountpoint, uh, just so that we could
see the effect of the creditscore all the way across the
board.
So this one, 680, 75 percent LTVbecause we dropped below a 700
(12:54):
credit.
And now the minimum credit scorefor this option.
Is 660 and 70 percent is themaximum LTV with a credit score
of 660 to 679, uh, 7.
7 to 6 percent is our rate at acost of one point.
(13:18):
So pretty good rates here, eventhough it's only a 660 credit
score.
And now for some cash outrefinance options.
Here's my option with a 740 pluscredit score.
Uh, the rate does not get anybetter above a 740.
So you're looking at 6.
(13:38):
9, 7, 6 percent at a cost of 1.
75 percent LTV, which is themaximum LTV for this, uh,
blanket loan TSC.
And our lowest credit scorepossible for a cash out refi is
our last example.
660 is a credit score.
(13:59):
60 percent LTV is the maximumLTV with a 670, excuse me, with
a 660 to a 679 credit score.
60 percent is the maximum LTVfor a cash out refi.
7.
651.
Is our rate at a cost of onepoint.
Now it is possible to buy therate down more or pay no points
(14:23):
and get a little bit higherrate.
But this is the one I chose for,uh, for the, uh, comparing to
the other, uh, rates chosen.
So please do look to themortgage calculator for your
blanket loans, non QM andagency.
(14:46):
All right.
Thank you, Jose.
I don't see any questions therein the chat.
Uh, definitely a great program,especially when trying to
finance multiple low valueproperties, especially, right?
So, yeah, if I just wanted tomake one good point here for the
MLOs listening here, rememberthe blanket loan, when you get a
borrower that starts asking youquestions about, hey, you know,
(15:10):
can you finance a 50, 60 or 70,000 property?
Make sure to ask them why.
Okay.
They're asking to make sure tofind out if they're looking to
buy multiple properties,because, uh, you know, you can't
finance the one property for 70,000 purchase price, but you can
certainly finance two or threeof them or more.
And you would be surprised thatthat may actually be what
(15:32):
they're looking for.
And if you bring it up and yousuggest that you may end up with
a blanket 000, which actuallyhappened to you pretty recently
yourself.
Right?
Those are.
Uh, yes, sir.
Uh, he, he asked me that samequestion.
How low can you go?
And instead of being discouragedand thinking, Oh my God, uh, uh,
(15:54):
I instead asked him, you know,why are you asking that?
And how much do you haveavailable for the purchase?
And when he told me he had like,I don't know, four or 500, 000,
that's when I pre approved himfor a blanket loan.
I don't know, it must've beenabout a million or 1.
2, 1.
3 million of which he opted toend up finding, I think it was
(16:14):
seven or eight properties.
And it ended up being like a sixhundred and fifty two thousand
dollars.
Awesome.
Just don't leave money on thetable there.
All right.
I still don't see any questions.
So we'll go ahead and wrap itup.
Remember that we do this show at11 a.
m Eastern every weekday where wego through our live rates and
then do a deep dive into adifferent loan type.
So we'll be back tomorrow with anew loan type.
(16:35):
Appreciate everybody tuning in.
We'll see you tomorrow at 11 a.
m Eastern for the next episodeof Daily Rates Live with the
Mortgage Calculator.
All right.
(00:00):
Welcome everyone.
My name is Kyle Hiersche.
I'm the COO of the mortgagecalculator joined here by our
president, Nick Hiersche, andour CSO, Jose Gonzalez.
We are a lender that specializesin non QM loans and what we do
every weekday at 11 a.
m.
Eastern on the show is gothrough our actual live mortgage
rates.
And then we do a deep dive intoa different loan type and
today's loan type.
There's going to be blanketloans, AKA portfolio loans.
(00:20):
So we'll go through those hereshortly.
But first we'll pull up ourrates.
So Nick, if you're ready, let'sgo ahead and pull up today's
live rates and see what theylook like this morning.
Right.
So a little bit of change fromyesterday's news, but we'll go
ahead and check out the ratesfor today.
(00:41):
It is October 1st, just after 11a.
m.
Eastern.
So all of our standard programshave their initial rate sheets
for today.
We will compare a standardscenario and compare the APR
across the programs.
If you'd like a full breakdownand itemized loan estimate of
all the fees that go into theAPR, please do it with our team
members.
They'd be happy to send oneover.
For the demo, as we do everyday, we'll set up a standard
(01:01):
scenario, single family home,500, 000 purchase, 400, 000 loan
amount.
That corresponds to 80 percentloan, 20 percent down payment.
Use an estimated 760 FIFO creditscore and an estimated 40
percent debt to income ratio.
So, let's check the rates fortoday.
Uh, looks like it just went upjust a tick from yesterday.
(01:24):
First up, our 30 year fixconventional for a primary home,
typically the most common optionpeople think of when they think
of a mortgage.
Rate as low as 5.
875.
Final APR, 6.
171.
So, ticked up just a touch over6.
We were just a touch under 6yesterday.
And if for any reason ourcustomers don't qualify for a
conventional option, youtypically want to quote a FHA
(01:45):
option to compare.
FHA allows more leniency oncredit issues and a higher
overall debt to income ratio,but it does require upfront and
yearly mortgage insurance.
4.
99 is the rate, and if I'm likeyou are with all of the mortgage
insurance and fees, 5.
912.
So notice if our customerqualifies for both programs,
they may consider FHA if they'rewilling to do that mortgage
(02:06):
insurance.
And our customers that need touse it, definitely a good
option.
Very comparable and conventionalat the moment.
And moving on to our VA is forour eligible vets and active
service members are eligible forVA loans rates as low as 5.125
final A PR 5.41 of four with astandard funding fee there.
And when we compare, VAs goingto always be the best option for
(02:29):
our eligible vets and servicemembers, and we compare to other
programs.
And the final standard optionhere, USDA is only for
properties in USDA eligibleareas.
That's the rural areas of thecountry.
The property is eligible and theborrower is eligible.
These are great to consider.
It's as low as 4.
99 final APR with standard fee5.
(02:50):
728.
So when we compare that to FHA,if our borrowers are shopping in
a rural area, USDA is going todefinitely be a better option
and better option thanconventional as well.
So definitely look for thoseprograms if you're looking in
those rural areas.
And moving on to our non QMoptions, many other banks or
lenders would have to deny ourcustomer.
(03:11):
Unfortunately, we have 5, 000other options here with our non
QM alt doc.
So if a customer doesn't qualifyfor standard documents for
conventional FHA, et cetera,using two years of tax returns,
needs to switch to alternativedocumentation, we can use bank
statements, 1099s, assetrelated, P& L, all kinds of
different options.
Bank statement option coming intoday, 6.
(03:31):
00, and final APR, 6.
297, so just a touch aboveconventional to switch to all
docs, which is amazing.
And we have tons of otheroptions here for investment
properties.
First up are non QM alt docoptions, so bank statement or
similar for investmentproperties coming in at 6.
5, right?
(03:52):
Final APR, 6.
823, and let's compare that tothe other investment options.
Conventional today is our onlystandard option.
Remember government programs,USDA, FHA, VA do not work for
investments.
So we'll compare that to thestandard conventional 6.
25 rate final APR 6.
(04:14):
581, which is cheaper than theall doc option, which is
typical, but not cheaper thanour favorite loans.
DSCR stands for debt servicecoverage ratio.
Don't even need any incomeinformation or employment
information from our borrowers.
We simply use the estimatedrents from the appraisal to
determine the DSCR ratio.
The estimated rents can coverthe estimated expenses, aka the
(04:36):
property cash flows monthly.
That's a DSCR ratio of one orhigher, which is preferred.
And this option here we'relooking at is our three year
prepayment penalty option.
Rates coming in today, 6.
125.
Final APR, 6.
450.
Beating conventional, absolutelyamazing.
And some of our programs allow afive year prepay to sweeten deal
even more with a five yearprepayment penalty.
(04:58):
We can drop the rates as low as5.
875.
Amazing.
Final APR 6.
169.
So definitely the best optionthere for our investors.
And we do have a no prepaymentpenalty option as well.
Some states don't allow it andsome investors don't want it.
That's not a problem.
Rates as low as 6.
5.
Final APR 6.
(05:18):
823.
Which is just a touch higherthan conventional.
I would still say most investorswould prefer a DSCR option.
And the final two options aresecond mortgage options here are
very popular as are many of ourclients have a low rate first
mortgage lower than what we'relooking at here and they still
want to get cash out and thebest way to do that is a second
(05:40):
mortgage or a key lock is thetraditional option.
But these fixed rate secondmortgages are our favorite
options here.
Great.
For a primary home, we can getcash out rates as low as 8.125,
file a PR 8.527.
Much lower rates than HELOCs,and obviously these are fixed
instead of adjustable.
And we can use the same programfor our investors, which is very
(06:01):
rare.
For HELOCs, we can get ourinvestment properties, cash out
rates as low as 9.25, file a PR9.557 without touching that
first mortgage.
And these are both non QMprograms as well, so we can use
bank statements, 10 90 nines, etcetera.
Let's go ahead and switch backover to today's topic definitely
(06:21):
a unique twist that we can't doin our live pricing a Blanket or
portfolio loan is a loan formultiple properties under one
loan a common request for ourinvestors so Jose before we
check out the options, let'stalk about why we would use this
and Particularly why we wouldnot it's very common
misconception there that this isIt's a preferred option when
(06:43):
typically it's the option of,uh, for only a specific set of
circumstances.
So let's check these out.
Great.
Good morning, everyone.
Thank you for joining us fordaily mortgage rates live with
the mortgage calculator.
Uh, first let's get into, excuseme, what a blanket loan is.
Uh, commonly known as aportfolio loan, but we don't
like to use that phrase becauseportfolio loans could be
(07:05):
misconstrued as a loan that alender makes and keeps in their
portfolio and doesn't sell.
A blanket loan is a loan that isfor multiple Individually titled
properties all under one loan.
That's why they call it ablanket loan.
So you could have 10, let's sayfor example, 10, uh, one to four
(07:25):
unit properties, uh, in the samestate being purchased from the
same seller, uh, could bepurchased with a blanket loan
or, uh, also, uh, 10 propertiesall owned by the same borrower
being refinanced where they'reall also in the same state.
That's a very critical.
Because, uh, lending laws changefrom state to state, so you
(07:49):
cannot commingle, for example,properties in Florida with
properties in Georgia.
on the same loan.
So we've covered what a blanketloan is, uh, when it, and uh,
now when would you use a blanketloan, right?
Uh, one of the commonmisconceptions is that the
blanket loan will have a muchlower closing costs.
(08:13):
Now there, there may be somesavings in terms of, for
example, individual underwritingfees that are assessed against
each, on each loan.
Right.
If you have 10 properties andyou finance them individually,
you're going to have 10underwriting fees, but at the
same time, you're, that's going,that savings is going to be
offset by some of the fees.
(08:35):
Uh, put on to blanket loanslike, uh, the property review
fees.
If you have one to fiveproperties, it's a certain fee.
You have, uh, you know, six to10 properties is a certain fee.
Uh, you have funding fees,closing fees.
So different fees that areassociated with the underwriter
and lender having to reviewmultiple property packages for
(08:58):
one loan.
And there also will be, um,Individual title policies that
are going to be taken outbecause each property's title is
going to have to be reviewed.
You may save a little bit on theclosing fee because you're only
going to have one closinginstead of 10 closings, but then
again, those are nominalsavings.
(09:20):
You also have to be aware ofthat.
That, um, now when you wouldreally want to use or the case,
I should say, where the blanketloan is most popular is when
you're trying to finance, uh, abunch of properties with low
dollar values, uh, we haveoptions that go as low as 50,
000 in loan amount, uh,allocated to each property.
(09:44):
And we have others that have aminimum loan amount of 100, 000,
excuse me, minimum property.
Thank you.
the value of 100, 000 perproperty.
Uh, those are the two commonones that we have for the
blanket loans.
So typically the investors aregoing to, they're going to buy
10, 15 properties of 000.
The only way to really get tofinance those properties would
(10:06):
be through a blanket loan.
Maybe you could find hard moneysomewhere, but you're really not
going to find a DSCR loans for50, 000.
But you can get two or threeproperties under one blanket
loan.
of where you where each isgetting allocated a fifty
thousand dollar loan amount andwe would perfectly be able to
close that loan.
(10:27):
So be aware when it's good, uh,and also be aware that blanket
loans may have restrictionsbeing able to individually, um,
uh, transact properties out ofthe blanket loan.
What I mean by that, that'scalled the carve out And which
(10:47):
is when you have, let's say fiveproperties in a blanket loan,
and all of a sudden somebodymakes you an offer, you can't
refuse on one of the properties,and now you want to sell it and
get it out of the blanket loan,you would have to make sure that
the blanket loan, uh, allows fora carve out because if it does
not allow for a carve out, whichmeans removing one property out
(11:08):
of the portfolio, then inessence, to be able to sell that
one property, You would have to,uh, refinance out of the blanket
loan, maybe by individuallyrefinancing each of the
properties, but do be awarethat, uh, that would be one of
the biggest issues.
If you do not bring it up toyour borrower is carve out.
So make sure you cover carveouts and if they're fine with
(11:31):
that, then, uh, full speedahead.
So let's go ahead and, uh, shareour options, uh, This morning
for you, uh, maximum loan tovalue, uh, for a blanket loan
purchase that we have is 80percent LTV.
Um, so this example here is I'massuming seven 40 plus credit
(11:51):
score, which will allow me to go80 percent LTV, uh, with the
best pricing and here we have 6.
876 percent at a cost of onepoint.
For this, uh, DSER blanket loan,80% LTV, the max.
(12:12):
Now when the credit score dropsto six 80, so six 80 to 6 99,
uh, it is 70%, 75% LTV, sobasically below 700, 6 80 to 6
99, you, it is maximum 75% LTV,and you're looking at seven.
(12:33):
0.
376 percent at a cost of onepoint.
Now in the pricing example thatI gave today, um, I priced them
all out with one loan discountpoint, uh, just so that we could
see the effect of the creditscore all the way across the
board.
So this one, 680, 75 percent LTVbecause we dropped below a 700
(12:54):
credit.
And now the minimum credit scorefor this option.
Is 660 and 70 percent is themaximum LTV with a credit score
of 660 to 679, uh, 7.
7 to 6 percent is our rate at acost of one point.
(13:18):
So pretty good rates here, eventhough it's only a 660 credit
score.
And now for some cash outrefinance options.
Here's my option with a 740 pluscredit score.
Uh, the rate does not get anybetter above a 740.
So you're looking at 6.
(13:38):
9, 7, 6 percent at a cost of 1.
75 percent LTV, which is themaximum LTV for this, uh,
blanket loan TSC.
And our lowest credit scorepossible for a cash out refi is
our last example.
660 is a credit score.
(13:59):
60 percent LTV is the maximumLTV with a 670, excuse me, with
a 660 to a 679 credit score.
60 percent is the maximum LTVfor a cash out refi.
7.
651.
Is our rate at a cost of onepoint.
Now it is possible to buy therate down more or pay no points
(14:23):
and get a little bit higherrate.
But this is the one I chose for,uh, for the, uh, comparing to
the other, uh, rates chosen.
So please do look to themortgage calculator for your
blanket loans, non QM andagency.
(14:46):
All right.
Thank you, Jose.
I don't see any questions therein the chat.
Uh, definitely a great program,especially when trying to
finance multiple low valueproperties, especially, right?
So, yeah, if I just wanted tomake one good point here for the
MLOs listening here, rememberthe blanket loan, when you get a
borrower that starts asking youquestions about, hey, you know,
(15:10):
can you finance a 50, 60 or 70,000 property?
Make sure to ask them why.
Okay.
They're asking to make sure tofind out if they're looking to
buy multiple properties,because, uh, you know, you can't
finance the one property for 70,000 purchase price, but you can
certainly finance two or threeof them or more.
And you would be surprised thatthat may actually be what
(15:32):
they're looking for.
And if you bring it up and yousuggest that you may end up with
a blanket 000, which actuallyhappened to you pretty recently
yourself.
Right?
Those are.
Uh, yes, sir.
Uh, he, he asked me that samequestion.
How low can you go?
And instead of being discouragedand thinking, Oh my God, uh, uh,
(15:54):
I instead asked him, you know,why are you asking that?
And how much do you haveavailable for the purchase?
And when he told me he had like,I don't know, four or 500, 000,
that's when I pre approved himfor a blanket loan.
I don't know, it must've beenabout a million or 1.
2, 1.
3 million of which he opted toend up finding, I think it was
(16:14):
seven or eight properties.
And it ended up being like a sixhundred and fifty two thousand
dollars.
Awesome.
Just don't leave money on thetable there.
All right.
I still don't see any questions.
So we'll go ahead and wrap itup.
Remember that we do this show at11 a.
m Eastern every weekday where wego through our live rates and
then do a deep dive into adifferent loan type.
So we'll be back tomorrow with anew loan type.
(16:35):
Appreciate everybody tuning in.
We'll see you tomorrow at 11 a.
m Eastern for the next episodeof Daily Rates Live with the
Mortgage Calculator.
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