Most mortgages sold today are purchased by Fannie Mae and Freddie Mac. For a loan to be eligible for purchase by these entities, the loan must meet specific conditions regardless of the lender. These loans are called conforming loans. Sometimes borrowers do not meet these conditions and must seek alternative financing options. Portfolio loans are loans that a lender keeps on their own books not subject to the same requirements as those loans purchased by Fannie Mae or Freddie Mac. An in-house portfolio loan from Caliber Home Loans may be a valuable option for some borrowers where conventional financing is not available.
One of the requirements for a conforming loan is that the total amount of the loan is $417,000 or less. This can be as high as $625,000 in what are considered high-cost areas. Loans that exceed these limits are referred to as Jumbo loans and will not qualify. This however does not mean that the borrower is a poor credit risk. These borrowers often have strong credit and good income making them ideal candidates for portfolio loans. Caliber Home Loans offers jumbo loans with down payments as low as 10 percent with no mortgage insurance for qualified borrowers.
Portfolio loans are also available for buyers who may not have the perfect financial history. Some individuals are forced to file for bankruptcy after unfortunate events such as a job loss. Others may have had difficulties in the past making mortgage payments but have since improved. Even if you have had several late payments within the past year, you may still be able to qualify for an in-house loan.
Investors looking to purchase investment properties can also take advantage of portfolio loans. Many traditional loan products are only available to buyers who will be occupying the property they purchase. This can limit options for those looking to purchase properties to rent or resell. Portfolio loans provide an option when traditional financing is unavailable.
In House Portfolio Loans from Caliber Home Loans
- Loans available from $150,000 up to $2,500,000
- Credit scores as low as 580 accepted
- Financing available for single family residences, 2 to 4 unit properties, condos, investment properties and more.
- Down payments as low as 10%
- Fixed and Adjustable Rate mortgages available
- Up to 60 percent debt to income ratio considered
- Seller contributions may be allowed
Whether you are looking to purchase a rental property in Point Loma or a new home in Coronado, an in-house portfolio loan may be an excellent solution for you. Caliber Home Loans provides in-house portfolio loans to buyers throughout San Diego. Contact us today to see how we can help you.