The What, Why, and How of GMB Portfolio Loans
What is a portfolio loan?
What makes a portfolio loan different than most mortgage loans is that the loan is funded locally, with funds deposited by GMB account holders. The loan becomes part of the bank’s “portfolio.” We are not selling the loan or the servicing (monthly payment collection) to another bank or organization. We’re taking care of it all ourselves, right here in Wisconsin.
Why a portfolio loan?
Portfolio loans come with a number of advantages. Because the loan is funded by GMB, there are almost always fewer underwriting restrictions. Portfolio loans are seen as a common-sense approach to mortgage lending – different from the “fit in-the-box” approach consumers experience from a conventional mortgage. Our common-sense lending is what sets us apart from many other banks – of all sizes!
What are the borrower advantages?
There are a number of reasons why a particular borrower might not fit into the typical conventional “box” that other banks use to approve (or disapprove) a loan. Life events like divorce, injury resulting in medical bills, or bankruptcy can have a negative impact on your credit score. Portfolio lenders like Great Midwest Bank have the ability to analyze each application and the circumstances of every individual applicant, rather than make those surface-level judgments.
Those who are self-employed do not always fit into the conventional mortgage box either. Portfolio lenders have the ability to look at a borrower’s entire financial situation and make a common-sense decision.
Condos or unique properties are another great fit for portfolio loan consideration. Oftentimes, condominiums do not meet the right standards for conventional or FHA loans. Unique and higher priced homes that do not have any comparable sales available for an appraisal can be considered for a portfolio loan.
Vacant lot loans are another specialty at Great Midwest Bank. For those planning to build in the future, we often use a portfolio loan to temporarily finance a lot that is suitable for future construction. Local banks are the best source of financing for this type of transaction.
Lastly, another popular use of our Portfolio Loan is for investment property. Great Midwest Bank has long been a provider of financing to experienced landlords who won’t qualify for secondary market financing, often because they have exceeded the maximum allowed number of financed units.
At Great Midwest Bank, we value our relationships with our clients and borrowers, taking the time to custom-fit a solution one customer at a time. Few know the Wisconsin housing market like us, because we are Wisconsin homeowners too.
If you have any further questions about portfolio loans and finding the perfect financing fit for your situation, visit one of our nearby locations or give your local Loan Officer a call for more information.