Advantages of Portfolio Lenders

Portfolio lenders can be used as an alternative to standard banking institutions by anyone who is in need of a mortgage loan. A portfolio lender can also be a bank, however the loan a portfolio lender provides will often have more flexible terms when compared to those offered by traditional mortgage lenders.

Portfolio Lender Specifics

Portfolio lenders can be community banks, privately owned banks or any other lending institution that does not sell their mortgage loans on the secondary market. These lenders keep their loans in house, so they can profit from the interest. Their loan guidelines may not be as strict as those of a standard banking institution, but many requirements are still in place for all borrowers who want to obtain a mortgage loan.

Benefits to You

Since a portfolio lender does not sell their loans to another source, they can often provide you with more leeway on your mortgage. For example, they could issue you a longer term loan than a standard bank would, which will lower your monthly payment. In addition to saving you money, this could even allow you to purchase a larger home, if the lender approves your request.