Who says mortgage lenders can’t be creative and unique?
The vast majority of mortgage loans made today are standardized and government-backed. The remaining segment, however, is stuffed with some of the most innovative and consumer-friendly mortgage loans on the market.
Collectively, these contemporary loans are known as portfolio loans.
Portfolio loans are loans that mortgage lenders make and then hold on their books, in a portfolio of loans.
Portfolio loans are the opposite of loans that are made with the backing of the U.S. government, through one five federal agencies.
One example of a portfolio loan is the jumbo mortgage.
In portfolio lending, mortgage lenders get to make their own rules and standards because the loans won’t be “moved” once they’re made. This lets lenders get creative, and home buyers win big.
There are a handful of portfolio loans that target specific groups of home buyers that might otherwise have a tough time get a loan, including:
- Home buyers with a lot of saved-up cash, but not a lot of income
- Home buyers who have just started a business
- Home buyers in brand-new condo buildings
There other portfolio loans types, too, including targeted programs for doctors and medical residents; for buyers with low credit scores and high levels of income; and, for buyers buying a new-construction house.
There’s no common-sense scenario that a lender won’t at least consider for a portfolio loan, so don’t assume your situation is too unique to get approved.
You can’t know what’s possible until you ask.
Are you a first time home buyer?
Let us know if you’ve done this before - whether you’re a seasoned pro or buying for the first time. We’ll share the perfect information with you as you need it.
An insurance claim is an official request you make to an insurance company, asking to get paid for damages. Insurance claims can be made for any reason that’s a part of your insurance policy. When you have homeowners insurance, you can make an insurance claim after a fire in your home; after there’s been theft […]