Our 2024 Community Impact Report is Here - Take a Look!
Community Impact Report
Mon - Thurs: 8:30 AM - 5:00 PM Friday: 8:30 AM - 6:00 PM
Take a look through some frequently asked questions.
View FAQs
Portfolio lending refers to financing where the lender keeps the loan on its own books instead of selling the mortgage on the secondary market. This approach allows for more flexible lending standards, making it a viable option for borrowers who might not qualify under traditional loan criteria.
A portfolio loan is retained by the lender who originates it rather than being sold to entities like Fannie Mae or Freddie Mac. However, lenders like First Federal underwrite these loans to Freddie Mac standards, offering a balance between adherence to conventional guidelines and the flexibility provided by portfolio management.
Portfolio loans offer several advantages, particularly for those with unique financial situations:
While the application process is similar—applying and getting approved—the underwriting process for portfolio loans is distinct. First Federal's underwriting process offers more flexibility within the framework of Freddie Mac standards. This approach can make funds more accessible to those not qualifying for traditional financing.
First Federal, for instance, offers specialized programs like the First-Home Buyer Loan Program for first-time homebuyers. This program requires only a 3% down payment and includes down payment assistance options. It is part of their broader approach to supporting the community and allowing more people to own a home.
In conclusion, portfolio lenders are an excellent solution for many potential homeowners, offering flexibility and a more personalized borrowing experience. If you're considering such a loan, the next step is to discuss your specific needs and circumstances a with a First Federal loan officer. Visit a local branch to start that conversation.
April 24, 2024