Portfolio loans are loans that a lender “keeps” vs. selling them to Fannie Mae or Freddie Mac at closing.
They can be a useful tool for buyers who don’t fit into traditional lending guidelines.
You won’t find portfolio loans at most large lending institutions, but some credit unions offer them and they can be a good option for a borrower who’s a good credit risk, but lacks the ability to qualify for an agency loan.
Examples might include a newly-minted physician, dentist, or veterinarian who is just out of school and starting a new practice.
Portfolio loans offer the ability for creative solutions, such as securing a loan with more than one property, future principal reductions, and re-casting the terms of the loan in the future.
I work with a local credit union that offers very flexible portfolio mortgage financing.
Give me a call at (208)938-5533 if you would like additional information.