Regulations for conventional government-backed loans have loosened slightly over the past few years, but for those who are self-employed or still find themselves limited by a recession-induced blemish, a portfolio loan might be the quicker route to approval.
Unlike a typical mortgage that is sold after closing, portfolio loans are funded by your lender and (typically) stay in-house for the duration of the mortgage. Instead of conforming to the standard criteria, the lender has an internal process that can work around issues which might otherwise prevent a loan from getting approved.
Traditionally, portfolio loans were difficult to come by and made up a small percentage of banks total loans, but we recently met with a manager at Talmer Bank and it turns out over 30% of their loans are portfolio; for Chemical Bank, who Talmer is about to merge with, it’s over 60%.
Interested? Connect with us to learn more and we’ll put you in touch with a lender who can make sense of everything you just read.
Lou Bitove & Jeff Bortnick, owners of The New Home Experts®, have more than 30 years combined experience in real estate, much of that with builders like Pulte & Toll Brothers. They also provide market research for area builders, developers and national firms. If you’re considering a new home, remember: the builders rep represents the builder, not you. Work with the only local agents in Metro Detroit to specialize in new homes, and save money in the process – ask us how!