A bank is considering a loan for a self-employed buyer purchasing a home on 14 acres with irregular income and features that do not fit standard secondary-market guidelines. Which financing approach best matches that situation?
Correct Answer
C) Offer a portfolio loan using the bank's own standards and keep the loan in-house
A portfolio loan is the best match because the lender can keep the mortgage in its own portfolio rather than trying to fit the file into standardized secondary-market underwriting. That flexibility is often used for borrowers or properties that fall outside ordinary conforming guidelines.
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