Source: Understanding Portfolio Loans
Know how to use portfolio loans- loans for investors and primary residence borrowers who may “just miss” being bankable from a conventional loan view. It might be time of being self employed, lack of w2 income or special “one time” credit issues. . Look for factors that underwriters look for in non qm and portfolio lending. Learn how to show income, assets, and ability to repay the loan. Most borrowers dont understand they are “interviewing” , put your best foot forward.
Be prepared to discuss your income, credit and ability for down payment
Hint, a shortcut to portfolio loans: Describe your scenario , (how you make make money and the future continuity of your income. your credit should be ok in last 12 months and be able to explain any negative items).
Portfolio should not be confused with the old “subprime” lending market or “stated income ” loans for investors.