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General Questions about Portfolio Loans

What do you mean by “common-sense lending?”
Common-sense lending means we take the time to get to know you and your situation, not just your credit score and income history. Why? Because those two numbers alone don’t tell the whole story about you. Instead, we go one step further with a more personal approach.

Get more information about our common sense lending approach in this article.

Can I apply specifically for a Portfolio Loan?
Not exactly. We’ll review your mortgage application and your situation to determine which loan option works the best. That may include a Portfolio Loan. Contact a loan officer for more information.

Does Great Midwest Bank sell Portfolio Loans to a secondary market or do you continue to service the loan internally for the life of the loan?
What makes a Portfolio Loan different from most mortgage loans is that the loan is funded locally. The loan becomes part of our “portfolio” and we service it locally for the life of the loan. We don’t sell the loan off to another bank or organization.

Does Great Midwest Bank offer Portfolio Loans for the purchase of investment properties?
Condos or unique properties can be considered for a Portfolio Loan. 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 as well.

How do the interest rates of a Portfolio Loan compare to a conventional mortgage loan?
Because we fund the loan ourselves, we have greater underwriting flexibility. This means often we can offer lower monthly payments when compared to conventional fixed-rate mortgage loans. Contact a loan officer to learn more.

Are the Portfolio Loans adjustable-rate or fixed-rate mortgages?
Most of our Portfolio Loans are adjustable-rate. Contact a loan officer for more information.

Portfolio Loan Application Process

I’m self employed. How will you verify my income?
Generally, the income of self-employed borrowers is verified by obtaining copies of personal (and business, if applicable) federal tax returns for the most recent two-year period. We’ll review and average the net income from self-employment that’s reported on your tax returns to determine the income that can be used to qualify. We won’t be able to consider any income that hasn’t been reported as such on your tax returns. Typically, we’ll need a full two-year history of self-employment to verify that your self-employment income is stable.

I am relocating because I have accepted a new job that I haven’t started yet. How should I complete the mortgage loan application?
Congratulations on your new job! If you will be working for the same employer, complete the application as such but enter the income you anticipate you’ll be receiving at your new location. If your employment is with a new employer, complete the application as if this were your current employer and indicate that you have been there for one month, as many loan programs now require a pay stub showing 30 days of employment prior to purchasing a home. The information about the employment you’ll be leaving should be entered as a previous employer. We’ll sort out the details after you submit your loan for approval.

Do I have to provide information about my child support, alimony or separate maintenance income?
Information about child support, alimony, or separate maintenance income does not need to be provided unless you wish to have it considered for repaying this mortgage loan. Any income of this type must have been paid on a timely basis for the past year, with proof of such verified by our loan processor.