Creative lender questions for San Antonio, TX!

[Alejandra Perez]

Hello! Does anyone know of a lender in San Antonio, TX with an underwriter that only requires 1 year worth of paperwork? Also, what are the advantages of a portfolio lender keeping my loan in house? Any advice would be greatly appreciated :)

[Andrew Postell]

@Alejandra Perez if you are self-employed you won't be able to get a "conforming, conventional" loan with 1 year of tax returns so we need to look for "portfolio" loans. 

A "Conforming" loan is a loan governed by Fannie Mae and Freddie Mac (if you recognize those names). You can this same loan from any bank. The rules to Fannie/Freddie loans is that you have to loan in a person's name. 30 year fixed rates here with a lower rate than other loan types. The rates and terms are better for these loan types but there's not much flexibility for the bank to make a decision - since it's not their money. This loan type would be very specific on requiring you to have 2 years of tax returns if you are self employed.  If you are W2'd for one year there are exceptions to being employed for just 1 year.  HOWEVER - and this is a strong however - a bank could have an "overlay" that that add ON TOP of the Fannie/Freddie guidelines. So if you are seeking this route then please talk to your lender about their requirements.

A "Portfolio" loan is a loan that comes from the bank's own portfolio of money - thus the name. So the bank makes the call. These loans could be easier to qualify for but the terms are different than a conventional loan. Sometimes the rates are adjustable, sometimes they are higher rates, sometimes these are 15 year loans....and often they are all three of these. And since the bank makes their own decision on their own money...each and every bank will have slightly different loan rules. You would literally have to call each and every bank to find out the rules to each and every portfolio loan out there. These loans types might not care about your work history but they could. If you wanted to go this route you would need to speak with each bank individually.

In both scenarios a smaller or mid-sized lender is a better route than a larger bank. Hope this helps!