Overview
A portfolio mortgage is a type of mortgage loan that is originated and held by the lender instead of being sold on the secondary mortgage market. In essence, the lender retains the mortgage in its loan portfolio rather than selling it to investors or government-sponsored enterprises (GSEs) like Fannie Mae or Freddie Mac. Overall, mortgage portfolio loans offer an alternative financing option for borrowers who may not fit the criteria of standardized mortgage products or who prefer to work with a local lender.
Loan Amount:
$500,000 minimum loan amount up to an over $30,000,000 with a
maximum loan to value of 70%.
Credit Score
The lowest middle credit score from all borrowers will be utilized to
determine program eligibility. Any exceptions to the FICO requirement should be carefully considered and the exceptions must be reasonable and well documented.
Approval is based on the scenario.
Underwriting Flexibility
Since portfolio lenders hold the loans on their books,
they have more flexibility in their underwriting criteria compared to loans that must conform to strict secondary market standards. This can be advantageous for
borrowers who may not qualify for traditional mortgages due to unique
circumstances, such as self-employment income, non-traditional credit history, or
property types that do not meet conventional guidelines.