A loan that originates in a portfolio and remains there may be helpful to some first-time home buyers. A portfolio loan means that the lender is not selling the loan to the secondary market. Because the portfolio lender - usually a large bank - is using its own funds and not immediately selling the loan to the secondary market, the lender has more flexibility in determining the credit-worthiness of a home buyer and therefore in approving a loan.

Once the home buyer has made payments for a year or more without being late, the portfolio loan is considered seasoned and can be sold to the secondary market. Selling the loan to the secondary market frees the lender to make more loans and gives you, as a home buyer, a better track record where credit is concerned.


What is a Loan that Originated in a Portfolio?
What is the "Secondary Market"?
What Kind of Documents are Required for a Loan?
What is a Credit Check and Who Performs Them?
What Does a Lender Have to Disclose to You by Law?
What is PITI?
Why Do I Need Private Mortgage Insurance (PMI)?
Where Do I Get Private Mortgage Insurance (PMI)?
What is an Interest-Only Loan?
What are the Limits on FHA Loans?
What Is Seller Financing?
What are the Primary Institutions of Money and Mortgages?
What is the Advantage of Using a Broker for my Home Loan?

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Type of Loan

Mortgage Refinance
Home Equity Loan or Line
Debt Consolidation
New Home Loan

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