Portfolio Mortgage Programs
A portfolio loan is underwritten and serviced by the bank lending the funds. The benefit of a portfolio loan programs is where a borrower may not fit into the "traditional" Fannie/Freddie Mac underwriting guidelines. We will consider compensating factors such as cashflow, asset base, job stability and mortgage history. No mortgage insurance. Condominiums with litigation or high investor concentration are allowed. A mortgage late payment 1x30 in past 12 months is ok.
A Portfolio Loan might be defined as:
1) Conventional and jumbo loans that don’t quite fit conventional agency guidelines
9) ITN? no social security number
10) Debt Service Coverage Loan
11) Fix and Flip
Self-employed borrowers must have credit 640+, strong asset base. Business with high sales but low profits which does not qualify for traditional financing. For example, we closed a loan for a business owner with consistent gross sales of $700,000 but net profit of $50,000. Purchased a $750,000 second home, 30% down payment. Borrower had substantial ($300,000+) asset reserves remaining after closing. Debt-to-income ratio 60%+ was not an issue.
Personal or Business deposits averaged to calculate monthly gross income in lieu of W2 or tax returns.
Examples of loans that we do that others won't: Previous bankruptcy, previous foreclosure, previous short sale, prior modification, HOEPA/Section 32 loans, mobile homes of any age, no maximum acreage, vacant land, Non-Qualified Mortgage and zoning problems.
We are willing to take some risk and to give you a second chance. But these loans are riskier than the conventional loan so we underwrite them carefully. What does that mean to you? We don't offer prequals or preapprovals because we need to see a full application, income verification, and credit report in order to price the loan accordingly. But our conditional approval requirements are very reasonable. Loan amounts up to $6,000,000. Down payment based on credit score. Gift as part of down payment are okay.
Purchase or Refinance programs for W2 wage earner or self-employed borrowers. No minimum credit scores, 35% down payment. Assets are verified. Owner occupied or Investment and 1 - 4 unit properties. We can use asset depletion as source of income to qualify, maximum debt-to-income ratio 60%.
Loans to $1 million 35% down payment
Loans $1- 3 million 40% down payment
Loans $3 million + 45% down payment
Benefits of Portfolio loan