Portfolio loans? - Posted by Sue

Posted by James Harris on July 06, 2005 at 12:36:02:

I believe they are both the same, it’s a loan against the equity in your peoperty. there may be other ways around getting a loan for the construction .

Portfolio loans? - Posted by Sue

Posted by Sue on July 05, 2005 at 13:45:19:

We are trying to build a house in the next year or so. We currently own a home, a condo, the land we’re going to build on, a small apartment building and a small commercial building. We have decent equity (35-50%) in each of the properties.

We’re trying to figure out the best way to use the cash we have in equity in each of these properties to finance the new build and all that goes with it. Is a portfolio loan the way to go? My husband seems to think that our finances wouldn’t qualify us for a portfolio loan… basically we’re not rich, just careful.

Any suggestions on how to best utilize the equity we have in each property? I don’t really think we want to get lines of credit on each one separately… I don’t even know if a LOC would even be available on the commercial property and the land so it may not even be an option.

Any guidance is appreciated. We’re in Ohio.

Re: Portfolio loans? - Posted by James Harris

Posted by James Harris on July 05, 2005 at 13:56:23:

Sue, Might I suggest two options; 1) get a cash out refi on the two properties and use the cash for construction,2) obtain a LOC, build your property then refi to payback youre LOC,Or 3) obtain a construction loan, keep your equity, then refi when constructuion is complete. Some thing to think about.

Re: Portfolio loans? - Posted by Sue

Posted by Sue on July 05, 2005 at 14:33:34:

Thanks for your response. A construction loan seems the obvious solution except for the fact that we are going to be the general contractors for the build ourselves, which seems to make getting a construction loan nearly impossible. I’m guessing that the best way to do this will be to get separate HELOCs on these and go that route. I’ll have to research the difference between a LOC and a HELOC. Thanks…

Re: Portfolio loans? - Posted by Jorge Carrejo

Posted by Jorge Carrejo on July 08, 2005 at 13:07:49:

HELOC:Home Equity Line Of Credit
LOC: Line Of Credit.