Portfolio loan
A loan the originating lender holds on its own balance sheet rather than selling to Fannie, Freddie, or investors. Portfolio lenders set their own guidelines and can be more flexible on documentation, property type, and loan structure. Most non-QM loans are portfolio loans.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
- Conventional loan — A mortgage that conforms to Fannie Mae and Freddie Mac guidelines. Not government-insured. Lowest rates for bo…
- FHA loan — A mortgage insured by the Federal Housing Administration. Allows lower down payments (3.5% with 580+ credit),…
- VA loan — A mortgage guaranteed by the Department of Veterans Affairs, available to eligible service members, veterans,…
- USDA loan — A mortgage backed by the U.S. Department of Agriculture for homes in eligible rural areas. Zero down payment,…
- Bank statement loan — A non-QM mortgage that qualifies borrowers on 12–24 months of bank deposits instead of tax returns. An expense…
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Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.