What is a portfolio loan?

Direct answer

A loan a bank keeps on its balance sheet rather than selling to GSEs — more flexible underwriting.

Expanded explanation

Useful when a deal doesn't fit Fannie/Freddie boxes: high property count, LLC vesting, unique property type, or non-W-2 income. Rates run 0.5–1% over conventional.

Examples

• Local bank 30-year portfolio loan on 11th rental at 7.5%.

More Financing questions

• What's the difference between a DSCR loan and a conventional loan?
• Conventional vs DSCR loan — which to choose?
• When does hard money make sense?
• When should I use a portfolio lender?
• How do I negotiate seller financing?
• What is DSCR and what's a good ratio?