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Portfolio Loans

May 11, 2011

Portfolio Loans – Another Flexible Option to Close the Deal

Darren Smith, Mortgage Banker

From Darren Smith, Mortgage Banker

Today, very little in the mortgage industry is open to interpretation. There are specific guidelines and rules that relate to originating, disclosing and underwriting a loan.  One area that continues to offer flexibility to real estate professionals and their clients is in portfolio lending.

A portfolio loan is kept on the books of the originating bank.   Because the loan is not sold on the secondary market, there may be some flexibility when originating the loan, which in turn can be mutually beneficial to the customer as well as the bank.

Portfolio loans are ideal for:

  • Homebuyers who need low start rates to qualify for more house.
  • Properties in need of repairs or improvements that need to close before the repairs or improvements are made (known as a Repair Escrow Holdback feature).  Common with Foreclosures or properties acquired via a Short Sale.
  • Homebuyers who need a jumbo loan that exceeds Fannie Mae or Freddie Mac loan limits.  For example, in some markets any loan greater than $417,000 is above their limits.
  • Those customers who find it appealing to maintain a relationship with a local lender throughout the life of their loan.
  • Borrowers that want to pay down their principal after closing and then recast their current payment.
  • Homebuyers with unique situations or property types that need a common sense loan.

Our portfolio loan products can offer the tools you need to close on a deal.  We offer a suite of Jumbo and Portfolio Arm products as well as a 1st Lien Line of Credit.

Ask your loan officer for more details on all of the loan programs we offer!

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