Portfolio Loan
Our portfolio loan offers an alternative when circumstances restrict your ability to get a conventional mortgage loan.
When traditional mortgage financing is not an option.
If you have circumstances that don't allow you to qualify for a conventional home loan, like a foreclosure, recent bankruptcy, or credit issues, a portfolio loan from NASB may be the solution. Our portfolio loan offers an alternative for qualifying requirements, looking at the entire picture of your income and assets.
Portfolio Loan Guidelines and Requirements
To qualify for our portfolio loan, here are some of the requirements and guidelines to consider:
- Loan amounts up to $1,250,000 with higher limits considered upon qualification
- 20% down payment
- Gift funds are allowed up to 20%; no borrower contribution is required
- Debt-to-income ratio up to 48%
- Two-year seasoning is required on bankruptcy, four years on short sale or foreclosure
A minimum loan amount of $175,000 is required to apply*
Portfolio Loan FAQs
What is a portfolio loan?
A portfolio loan is a loan that a lender will keep in their portfolio, instead of selling to the secondary market. A primary reason that these lenders keep the loans in their portfolio is to provide a lending option to those who may not fit secondary market eligibility guidelines and to help the local community. It’s part of their mission and purpose.
How does a portfolio loan work?
When borrowers who do not meet the criteria required for a conventional mortgage loan, such as those sold to Fannie Mae or Freddie Mac, a portfolio loan can be a more flexible option. Lenders offer these so that borrowers can get a loan, even though they may be self-employed, have a low credit score or have gone through a bankruptcy. These loans must be held and serviced by the lenders, as they cannot be sold in the secondary market.
Who can benefit from a portfolio loan?
Portfolio loan lenders like NASB will dig deep to find out about what caused your economic issues and what you’ve done to recover from it. This allows borrowers with blemishes on their financial history to have a chance at owning a home. Other situations that make a portfolio loan a good option include:
- Self-employed borrowers.
- Foreign nationals.
- Borrowers with high income, low credit.
- Borrowers without documented income but high net worth.
How do I qualify for a portfolio loan?
Because portfolio loans do not have to meet GSE (Government-Sponsored Enterprise) guidelines, the requirements for portfolio loans vary from lender to lender. The lender is assuming the risk, so they set the qualifications. Generally, if a borrower can show they have the ability to pay back the loan, can make a down payment, and has a FICO score and debt-to-income ratio above a certain threshold, they may qualify for a portfolio loan.
What is the minimum required loan amount?
A minimum loan amount of $175,000 is required to apply. Exceptions include mortgage products for properties located within the Greater Kansas City metro and surrounding areas. Contact a NASB Loan Officer for details on the excluded areas and/or zip codes.
What Our Customers Say
Tallaresha C., October 21, 2022
★★★★★ (5)
"Because I noticed that you guys were on top of your game, I decided to go with NASB rather than some of the other lenders with whom I actually have banking relationships and who also provide me with lower interest rates. You guys didn't waste any time and had excellent communication. The fact that I was given the "clear to close" earlier than my original closing date was quite impressive to me, too. I look forward to doing business with NASB again very soon!"
"Because I noticed that you guys were on top of your game, I decided to go with NASB rather than some of the other lenders with whom I actually have banking relationships and who also provide me with lower interest rates. You guys didn't waste any time and had excellent communication. The fact that I was given the "clear to close" earlier than my original closing date was quite impressive to me, too. I look forward to doing business with NASB again very soon!"
Video - How to Get a Home Loan if You're Self-Employed
Watch this video to find out the two ways you can get a portfolio mortgage loan if you're self-employed without W2s or pay stubs.
