What makes a loan a Portfolio Loan?
A16: There are several factors that determine whether a loan is Portfolio Loan. For instance, if you have low credit scores and only 5% down, you would be considered a Portfolio borrower. Also, borrowers who want to purchase or refinance a home at a high loan-to-value (LTV), i.e., 96.5% – 100%, fall under a Portfolio loan or FHA loans. In addition, if a borrower is unable to verify their income, they are considered to be non-conventional. For instance, self-employed borrowers who do not want to disclose income simply state how much they make on their 1003 application. Stated income loans at high LTV’s are Portfolio loans as well.
