At Superior National Bank we offer many loan products and creative solutions to accommodate the various needs of our borrowers. For example, many homebuyers are more than qualified for a loan, but they do not meet the guidelines for a conventional loan because the property is non-warrantable. One loan product we can provide for this type of situation is a portfolio loan.
What is a Portfolio Loan?
A portfolio loan is any loan that a bank would issue to you that is not being sold to the secondary market. Instead, the bank holds the loan in-house or in other words, in-portfolio.
In contrast, almost any other type of mortgage loan is written with a set of guidelines and standards that must be met. For example, Fannie Mae and Freddie Mac. Since portfolio loans will not be sold and will be funded in-house, banks do not have to adhere to these guidelines and will have more leeway to approve you for a mortgage.
Who Would Benefit from Portfolio Lending?
Portfolio loans are a great solution for any borrower who does not meet the guidelines of conventional loans or government-backed programs.
Portfolio loans would be a good solution for:
- Non-warrantable condos
- Real estate investors who have reached the maximum financed-property limit
- Recent bankruptcy or foreclosure
- Low credit score but higher income
- House flipping
Related Article: How to Get Approved for a Non Warrantable Condo Loan
How Can I Qualify for a Portfolio Loan?
Basically you will apply for a portfolio loan the same way as you would apply for any other loan. We will need to verify your income, debt and review your credit score. The difference with a portfolio loan is that it’s typically easier to qualify for because we have more leeway when it comes to making a decision on the loan. We can also make quicker decisions since we underwriting the loan in-house.
Learn More: Michigan Portfolio Lending Requirements
How Can I Find a Portfolio Lender in Michigan?
Are you interested in a portfolio loan? Don’t just contact any lender. Most larger banks, like Wells Fargo will not offer a portfolio loan, or the representative you speak with won’t really have the authority to issue any kind of loan.
Instead contact a local Michigan bank that has the ability to work with you as a homebuyer or investor.
Julie Krumholz from Superior National Bank has over 30 years in the mortgage industry and has vast experience in several loan products including portfolio loans. Contact Julie today for more information.