Portfolio Loans: Flexible Lending Beyond the Guidelines
Kept on our balance sheet — not sold to Fannie Mae or Freddie Mac. Flexible underwriting for unique properties, credit events, multiple financed properties, and scenarios that don’t fit the conventional box.
When conventional guidelines say no, our portfolio program says let’s find a way. Here’s what sets portfolio lending apart.
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Bank Holds Your Loan
Your mortgage stays on our balance sheet — never sold to Fannie Mae, Freddie Mac, or secondary market investors. We set the guidelines, and we stand behind every loan we make.
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Flexible Underwriting
Portfolio loans aren’t bound by agency rules. We evaluate the full picture — compensating factors, asset strength, property cash flow — and make common-sense lending decisions.
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Unique Property Types
Finance non-warrantable condos, mixed-use buildings, properties on large acreage, non-standard construction, and other assets that conventional lenders decline.
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Credit Event Flexibility
Recent bankruptcy, foreclosure, or short sale? Portfolio guidelines allow shorter waiting periods than conventional programs — often with compensating factors like reserves and low LTV.
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Entity & LLC Ownership
Close in the name of an LLC, corporation, or trust. Conventional loans require individual borrowers, but portfolio lending supports the entity structures investors need for liability protection.
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Interest-Only Options
Reduce monthly cash outlay with interest-only payment periods of 5–10 years. Ideal for investors optimizing cash flow or high-net-worth borrowers managing multiple assets.
Eligibility
Who Qualifies for a Portfolio Loan?
If your scenario is too complex for conventional guidelines, a portfolio loan may be the right solution.
Borrower Requirements
Credit
Minimum 620 credit score (case-by-case below 620 with compensating factors)
Recent credit events considered with shorter waiting periods
Non-traditional credit may be accepted for certain scenarios
Income & Documentation
Full documentation (W-2, tax returns)
Bank statement programs (12–24 months)
CPA-prepared profit & loss statement
Asset depletion (qualifying income from liquid assets)
DSCR (property cash flow for investment properties)
Debt-to-Income
Up to 50%+ DTI with compensating factors
Reserves, assets, and property cash flow considered
Common-Sense Underwriting
Portfolio lending is about the full picture. If your credit score, income, property type, or timeline doesn’t fit the conventional box, we evaluate compensating factors — reserves, equity, cash flow, and overall financial strength — to find a solution.
Property & Loan Details
Property Types
Single-family homes and 1–4 unit residential
Condos (including non-warrantable)
Mixed-use properties
Unique construction (log homes, dome homes, etc.)
Properties on large acreage or in rural areas
Investment properties and second homes
Loan Amounts
$100,000 to $5,000,000+
Jumbo amounts beyond conforming limits
Purchase
10–25% down payment (varies by scenario)
Primary residence, second home, or investment
Refinance
Rate-and-term refinance
Cash-out refinance available
Hard money or private loan payoff
Minimal seasoning requirements
Loan Terms
Fixed rate: 30, 20, and 15 years
ARM: 5/1, 7/1 adjustable rate options
Interest-only periods available (5–10 years)
Portfolio Purchase
Non-Conforming Scenarios Welcome
When Fannie Mae and Freddie Mac say no, a portfolio purchase loan opens the door. Finance unique properties, overcome guideline hurdles, and close deals that conventional lenders can’t touch.
Exceed the conventional 10-financed-property limit
Finance non-warrantable condos and mixed-use buildings
Close in an LLC, trust, or business entity
Accommodate recent credit events with compensating factors
Qualify with bank statements, P&L, or asset depletion
Interest-only payment options for cash flow management
On a $500,000 non-warrantable condo with 20% down:
Purchase Price: $500,000 Down Payment (20%): $100,000 Loan Amount: $400,000 Est. Monthly Payment: ~$3,050
Portfolio loans are priced based on the full risk profile — credit, property type, LTV, and documentation. Stronger profiles receive more competitive rates.
Portfolio Refinance
Consolidate & Restructure
Refinance high-rate hard money loans, consolidate multiple mortgages, or access equity from properties that conventional lenders won’t touch. Portfolio refinancing gives you options when the secondary market shuts the door.
Refinance hard money or private loans at significantly lower rates
Cash-out refinance for debt consolidation or property improvements
Minimal or no seasoning requirements on existing loans
Consolidate multiple property debts into one streamlined payment
Rate-and-term refinance to lower monthly obligations
Refinancing a $400,000 hard money loan at 12% into a portfolio loan:
Current Hard Money Rate: 12.00% Current Monthly P&I: ~$4,114 New Portfolio Rate: ~8.25% New Monthly P&I: ~$3,007
Refinancing from hard money to a portfolio loan can save $1,000+ per month. Most borrowers close in 30–45 days with minimal documentation.
Borrower Profiles
Who Is a Portfolio Loan For?
Portfolio loans serve a wide range of borrowers and scenarios that fall outside conventional agency guidelines. If any of these describe your situation, we can help.
Real estate investors with 10+ financed properties
Self-employed borrowers with complex or declining tax income
Borrowers recovering from bankruptcy, foreclosure, or short sale
Buyers of non-warrantable condos or unique properties
High-net-worth individuals qualifying on assets, not employment
Foreign nationals and ITIN holders seeking investment properties
Developers and flippers needing permanent takeout financing
Explore all non-conforming loan options including DSCR, Bank Statement, and Asset Depletion in our Investor & Self-Employed Hub →
Portfolio Loan Costs
Understanding Portfolio Loan Costs
Portfolio loans are priced based on the complexity of the scenario. Here’s what to expect.
Cost
Typical Amount
Notes
Down Payment
10–25%
Varies by property type, credit, and occupancy
Origination Fee
0.5–2% of loan amount
May be rolled into the interest rate
Appraisal
$500–$1,500
Complex or high-value properties may require more
Title Insurance
$1,000–$5,000
Varies by state and loan amount
Recording & Transfer
$200–$800
County/state recording fees
Prepayment Penalty
Varies (if applicable)
Typically 1–3 years; no-penalty options available
Total Closing Costs
2–5% of loan amount
In addition to down payment
No Government Fees — Bank Sets the Terms
Portfolio loans are non-agency products — there are no FHA mortgage insurance premiums, VA funding fees, or conventional PMI. The bank prices each loan based on the individual risk profile.
✓ No FHA MIP or VA funding fee
✓ No conventional PMI requirement
✓ Interest-only options to reduce initial payment
Note: Rates and costs are illustrative and subject to change. Your actual rate depends on credit profile, property type, loan amount, LTV, and documentation. Contact us for a personalized quote.
Loan Comparison
Portfolio Loan vs. Conventional Loan
See why borrowers choose portfolio loans when conventional financing falls short.
Portfolio Loan
Conventional Loan
Sold to Fannie/Freddie
No — kept on bank’s balance sheet
Yes — sold on secondary market
Property Types
✓ Non-warrantable, mixed-use, unique
Standard properties only
Credit Events
Shorter waiting periods
2–7 year waiting periods
Financed Properties
✓ No limit
Max 10 financed properties
Entity Ownership
✓ LLC, trust, corp
✗ Individual only
Interest-Only
✓ Available (5–10 yr)
✗ Not available
Income Documentation
Full, bank stmt, P&L, assets
Full documentation required
Max DTI
50%+ with compensating factors
45–50%
Interest Rate
0.5–2% above conventional
Market rate
Loan Amounts
$100K–$5M+
Up to conforming limit ($832,750)
Rates, terms, and requirements vary by lender, property type, and borrower qualifications. Subject to credit approval.
Portfolio Loan Calculator
Estimate Your Monthly Payment
Toggle between Purchase and Refinance to estimate your monthly payment. Refinance includes cash-out and debt consolidation options.
Estimates only. Actual rates, terms, and payments will vary based on credit profile, property type, LTV, and lender guidelines. Subject to credit approval.
The Process
Your Portfolio Loan Journey
From application to closing in 30–45 days. Here’s what to expect at every step.
1
Scenario Review & Pre-Qualification
1–3 Days
We review your scenario — property type, credit profile, income documentation, and investment goals. A soft credit pull has no impact on your score. We’ll confirm whether a portfolio loan is the right fit and outline your options.
2
Documentation & Application
3–7 Days
Submit your application with the agreed-upon documentation — whether that’s full tax returns, bank statements, a P&L, or asset verification. We guide you through exactly what’s needed for your specific scenario.
3
Appraisal & Underwriting
14–21 Days
We order the appraisal and submit your file to underwriting. Portfolio underwriting evaluates the full picture — compensating factors, reserves, and property merits — not just rigid checkboxes. We keep you updated throughout.
4
Closing & Funding
1 Day
Sign your closing documents, finalize your down payment or payoff, and your loan funds. For purchases, you receive the keys. For refinances, your existing loan is paid off and any cash-out proceeds are distributed.
Frequently Asked Questions
Portfolio Loan FAQs
Answers to the most common questions about portfolio loans, eligibility, rates, and how they compare to conventional financing.
No. Texana Bank Mortgage uses a soft credit inquiry for pre-qualification, which has absolutely no impact on your credit score. You can check your eligibility, explore loan options, and get pre-approved without any effect on your credit. A hard inquiry only occurs later if you formally move forward with a full application.
A portfolio loan is a mortgage that the lender originates and keeps on its own balance sheet rather than selling to Fannie Mae, Freddie Mac, or other investors on the secondary market. Because the bank holds the loan, it can set its own underwriting guidelines — offering flexibility for borrowers and properties that don’t fit conventional agency requirements.
Conventional loans must meet Fannie Mae and Freddie Mac guidelines and are sold on the secondary market. Portfolio loans are kept in-house by the bank, which means the lender has more flexibility on credit scores, property types, debt-to-income ratios, and documentation. Portfolio loans may carry slightly higher rates (typically 0.5–2% above conventional) but offer solutions when agency guidelines are too restrictive.
Portfolio loans are ideal for borrowers who don’t fit into conventional boxes — real estate investors with multiple financed properties, self-employed borrowers with complex income, borrowers recovering from a recent credit event (bankruptcy, foreclosure, short sale), buyers of unique or non-warrantable properties, high-net-worth individuals using asset depletion, and anyone whose situation requires more flexible underwriting.
Yes. Portfolio loans are not subject to the conventional 10-financed-property limit. Investors with large portfolios can continue acquiring properties beyond conventional limits. Each deal is evaluated on its own merits, including property cash flow, borrower reserves, and overall portfolio strength.
Most portfolio loan programs require a minimum credit score of 620, though some scenarios may be considered with scores as low as 580 with strong compensating factors like significant reserves, low LTV, or substantial income. Borrowers with recent credit events may qualify with reduced waiting periods compared to conventional loans.
Yes. One of the biggest advantages of portfolio loans is flexibility with credit events. While conventional loans require 2–7 year waiting periods after bankruptcy, foreclosure, or short sale, portfolio lenders can consider borrowers with significantly shorter seasoning periods. Compensating factors like larger down payments, higher reserves, and strong income help offset recent credit events.
Yes. Portfolio loans can finance non-warrantable condos that don’t meet Fannie Mae or Freddie Mac guidelines — including buildings with high investor concentration, pending litigation, single-entity ownership exceeding limits, or incomplete HOA reserves. The property is evaluated on its individual merits rather than rigid agency condo rules.
Portfolio loans can finance mixed-use properties where a portion is commercial and a portion is residential. Mixed-use scenarios are evaluated case-by-case based on the residential-to-commercial ratio, property income, and borrower qualifications. This flexibility makes portfolio loans popular for investors in urban mixed-use buildings.
Yes. Properties that conventional lenders reject due to acreage, unique construction, non-standard features, or remote locations may be eligible for portfolio financing. The bank evaluates each property on its own merits rather than applying rigid agency guidelines. Examples include properties on large acreage, log homes, dome homes, and properties with mixed zoning.
Self-employed borrowers have multiple documentation options for portfolio loans including 2 years of tax returns, 12–24 months of bank statements, a CPA-prepared profit and loss statement, or asset depletion. The flexibility of portfolio underwriting allows the bank to evaluate the full financial picture rather than relying solely on adjusted gross income from tax returns.
Yes. Portfolio loans can accommodate debt-to-income ratios up to 50% or higher with compensating factors. Conventional loans typically cap DTI at 45–50%, but portfolio lenders have the discretion to exceed these limits when borrowers demonstrate strong reserves, significant assets, stable income history, or high property cash flow.
Yes. Many portfolio loan programs offer interest-only payment options for a specified period (typically 5–10 years), after which the loan converts to a fully amortizing payment. Interest-only options can significantly reduce monthly payments during the initial period and are popular with investors and high-net-worth borrowers managing cash flow.
A blanket mortgage is a single loan secured by multiple properties. Instead of managing separate loans for each property, investors can consolidate multiple properties under one loan with one payment. Texana Bank can structure portfolio loans to cover multiple investment properties, simplifying management and potentially reducing overall costs.
Portfolio loan seasoning requirements are more flexible than conventional guidelines. While conventional loans may require 6–12 months of ownership before refinancing, portfolio lenders can often consider refinances with minimal or no seasoning — particularly for properties purchased at auction, through foreclosure, or with cash that the borrower wants to recover.
Some portfolio loans include prepayment penalties, typically for the first 1–3 years of the loan. The penalty structure varies by program and is disclosed upfront before closing. Many portfolio programs offer no-prepayment-penalty options, though these may carry a slightly higher interest rate. Ask your loan officer about specific options.
Portfolio loan rates are typically 0.5–2% higher than comparable conventional loan rates. The premium reflects the increased flexibility and risk the bank assumes by keeping the loan on its balance sheet. The exact rate depends on credit score, LTV, property type, documentation type, and loan amount. For borrowers who don’t qualify for conventional financing, a portfolio loan provides access that would otherwise be unavailable.
Yes. Refinancing from a hard money or private loan into a portfolio loan is a common strategy. Hard money loans carry high rates (typically 10–15%+) and short terms. A portfolio refinance can significantly reduce your rate and provide a longer-term, more stable financing solution — often with minimal seasoning requirements on the existing hard money loan.
Yes. Portfolio loans offer asset depletion qualification, where the bank calculates qualifying income based on your liquid assets divided over the loan term. This is ideal for retired borrowers, high-net-worth individuals between ventures, or anyone with significant assets but limited traditional employment income.
Yes. Portfolio loans can close in the name of an LLC, corporation, trust, or other business entity. Conventional loans require individual borrowers, but portfolio lenders have the flexibility to work with entity ownership structures. This is particularly valuable for real estate investors seeking liability protection and tax advantages.
Reviews
What Borrowers Say About Texana Bank
Real reviews from real borrowers. See why investors and self-employed professionals trust Texana Bank Mortgage.
I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected.
They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals.
If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!
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Kent Sisco
★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
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Andrea Ferrell
★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
Andrea
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Clay Ragsdale
★★★★★
Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional.
Respectfully,
Clay
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Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
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Joseph Hardman
★★★★★
Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.
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Marsha Kessler-Bradshaw
★★★★★
I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
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Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
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Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
J
James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
JFields
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Rose Stone-Stewart
★★★★★
Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.
M
Mitchell Morris
★★★★★
Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
R
Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
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Dejan Jajcevic
★★★★★
I’ve worked with mini bankers before and I used to do them over a decade ago myself and my experience that I had with Chad was nothing short of phenomenal. He is a wonderful Banker does a very diligent job and did not miss any moments of reassuring me where my loan was and closing I couldn’t say enough good things about him and I hope if I ever need to go through this stressful process again he is still in business to take care of me
J
James Reaves
★★★★★
Adam is awesome super friendly easy to work with always aware of what’s going on and keeps you informed which is great.
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Lesli Hopkins
★★★★★
Lynette is absolutely awesome to work with! She takes the time to make you comfortable with the process and answers any questions completely and accurately
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Bobby Strickland
★★★★★
Andre Floyd was ABSOLUTELY AMAZING. I just love working with him.
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Abraham Sanchez
★★★★★
Working with Greg Darlin has been an awesome experience. An honest and sincere individual. He is to the point and very very knowledgeable. I appreciate the fact that he didn’t try to give me the run around and through the entire process I learned a few things. Thank you.
Ready to Move Beyond the Guidelines?
Whether you're financing a unique property, recovering from a credit event, or building your investment portfolio, our portfolio loan specialists are here to make it happen.
