What is a portfolio loan?

Yup you’re approved! today on Yup, you’re approved! We’re talking with Ted Lyons talking about portfolios loans let’s see what we can do Ted I guess can you tell me kinda what is a portfolio loan? what sets portfolio loans apart
from almost every other mortgage loan out
there is almost every other lender goes on guidelines and standards by this Fannie
Mae Freddie Mac USDA Veterans Association Federal
Housing Administration there’s always guidelines that are
handed to lenders and we’re told underwrite this file and it fits these
guidelines it fit in this box you’ve got a great long list to go by selling transfer but with portfolio loan it is a loan underwritten completely
in-house by ourselves funded with own money with the
intention that it’s never going to be sold to anyone so what that does is frees up lets us get
outside the box and less red tape okay great basically in in this market
is mortgage environment whos really doing portfolio loans practically no one i’ve worked for
many companies through the years and this is the first lender I’ve ever
worked with that offers portfolio loans michigan first mortgage division of michigan first credit union we have our own funds to lend almost
everyone else is playing within that same box and so you
go to lender and lending company they’re all still working with the same playbook
we mentioned earlier but with us you know
who takes care of you it is maintained in house we service ourselves so there’s never anyone else to send payments to they go directly to us so can you give us a few
situations where a portfolio loan would I guess be
appropriate for certain situation sure I guess it falls
into two categories one is individuals and the other is actual property when it
comes to individual situation is there are lots of folks who had
bankruptcies foreclosures or short sales they are too recent or not
far enough in the past for them to be eligible for those other
loans we talked about in general if you’ve got a foreclosure
in the last three years every lender looking at every program is
going to be the same no because it doesn’t fit into general parameters
so folks in our
company has a great slogan “bad things happen to good people” that
situation where someone has a negative financial event too recent has to be underwritten
by regular guidelines so we find an opportunity to say
yes and actually get them into a home and not have to rent exactly that
because we look at with our own eyes we’re not just
plugging someone into parameters with our underwriting guidelines
we look at the totality of the circumstances and that gives us the ability to say yes
when other people are forced to say no so not as much a black and white
checker in the box situation more of a common sense idea absolutely
looking at the entire picture so individuals with it events in the
past that’s when its nice to go to our
portfolio loans and the other side is properties that
just don’t fit normal guidelines for most scenarios and the most common example that are
condominium complexes we can talk about that in the near future awesome appreciate that talk to you more next time on you, you’re approved!

Paul Whisler


  1. I'm buying a condo and the HOA hasn't been set up yet so I can't do a convential loan, I have to do a portfolio loan. I hope it goes through I'm a first time home buyer

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