Discover the Versatility of a Portfolio Loan

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By Tina Manshum - Mortgage Branch Manager, Okemos/Brighton

You may be surprised to learn there are a wide range of borrowers and situations that can benefit from this type of loan. What exactly is a Portfolio Loan, and could it be the perfect solution for you? Mortgage portfolio lending typically refers to a practice where a Credit Union lends money and retains the mortgage loans, they originate instead of selling them on the secondary market. This means the credit union services the mortgage which includes collecting principal and interest payments and maintaining the escrow account. This is great for our Michigan First Credit Union members as this allows us to re-invest in our membership and community.

A Portfolio Loan is a mortgage that doesn't conform to the standard loan criteria of a typical conventional mortgage such as a Fannie Mae or Freddie Mac loan would require. Portfolio Loans are outside of the conforming loan box for various reasons and that's why the mortgages are held in the credit unions portfolio.

A portfolio loan provides flexibility and allows the loan officer and underwriter to use their expertise to fully understand the financial situation and the life events that took place that are positive or difficult for you, but not necessarily good when trying to qualify to purchase a new home. At Michigan First, we all know that difficult situations can happen to good people. An example might be self-employed borrower that uses typical tax methods but doesn't always fit the needed criteria for a typical government loan. Perhaps, there was a hardship to cause a rough patch where otherwise good credit now has blemishes and are back on track this is when a portfolio loan may be an option. Having a portfolio loan product to use, allows more flexibility to review other facets of the business, assets, credit, and equity to allow financing when it may not have been possible before.

Here at Michigan First, we are experts in understanding your whole situation. Think about some of the following situations:

  • Self Employed
  • 1st and 2nd Homes (Vacation)
  • Life event caused a credit problem but are now back on track
  • Property that doesn't fit typical guidelines - i.e., non-warrantable condo
  • Jumbo Loans
  • Bank Statements
  • Side Hussle Income
  • Construction & Builder Loans
  • High Net Worth/Low Income Qualification Options
Life provides many challenges and opportunities that may be good, or they may be unexpected and difficult. Either way, this is when a portfolio, may be exactly what you need to achieve your goals of homeownership. If you fall outside the normal mortgage guidelines this may be the right mortgage loan for you!

Contact your Michigan First Mortgage loan officer to explore your options. Contact us at 877.312.9033 or visit MichiganFirstMortgage.com for details.

You may also like:

What is a Portfolio Loan and is it Right for You?
Is a Turning Point Loan Right for You?
Conventional Loans Explained