Non-Conforming vs Portfolio loans

[Manuel Fontan]

Hi BP community!

What are the main differences between a Non-Conforming Loan and Portfolio Loan?

As it turns out, when an investor has more than 10 properties, they no longer qualify for Fannie Mae mortgage loans (conventional foxed 30yr & 15yr, FHA, 203k, VA, etc) and the way to leverage debt is by using portfolio loans.

Any guidance on the topic will be greatly appreciated.

[Jaysen Medhurst]

@Manuel Fontan, Portfolio loans are held by the institution that issued them (i.e. not sold on the secondary market). This is usually a local/regional bank or CU. Non-confirming loans do not conform to Fannie/Freddie guidelines for one reason or another. They may be portfolio or sold into the secondary market as part of a private Mortgage Backed Security (MBS).