When and Why Should You Consider a Portfolio Loan?
By Mark Kimoto, Residential Loan Manager, American Savings Bank, Equal Housing Lender, Member FDIC

Portfolio loans are designed for clients in a unique borrowing situation, such as financing the purchase of a specific property type (e.g. a unique condominium unit or condo hotel) or a property with unusual zoning.

Also known as non-conforming or non-saleable loans, portfolio loans do not meet “agency guidelines” for Fannie Mae (FNMA) or Freddie Mac (FHLMC). Instead, they are offered by local lenders with portfolio lending capabilities, such as American Savings Bank, who understand Hawaii’s unique real estate market. 

Other situations that would merit a portfolio loan include residential loans to professional corporations and limited liability corporations; borrowers whose income history does not meet agency guidelines (e.g. a new medical doctor/professional in residency in which employment will start without two-year history); and loans for a unit in a co-op (a building owned by a corporation)/condos with a high concentration of investor owners or commercial usage.

Other common portfolio loan situations include financing the purchase of a vacant lot, construction-to-permanent loan financing, and borrowing more than the FNMA/FHLMC loan maximum of $726,525.

Each client situation is unique. Consult an experienced residential loan officer with your client’s specific situation to learn more. Loans are subject to qualification and approval, and to each lender’s credit and underwriting policy.

Mortgage rates were steady during the month of March and moved within a narrow range. The big news in March was the Fed meeting. The Fed indicated that they may not have any more hikes in 2019, but more importantly for mortgage rates, they will change their bond buying formula. This is good news for Home Buyers! The changes will take effect in May and in September so we will see how that impacts mortgage rates down the road. In the mean time we have seen rates move from the "low 4s" to the "high 3s". Fantastic!

SimpliFi Mortgage by Bank of Hawaii® is a new online mortgage experience that give you the choice to apply when you want and how you want. It allows customers in Hawaii and Guam to complete their mortgage application process entirely online, apply online with a loan officer of your choice, or work directly with a Loan Officer who can take in your application.  
 
"Bank of Hawaii is excited to continue addressing the growing demand for digital conveniences in our local community," said Matthew Emerson, BOH’s Senior Executive Vice President and Director of E-commerce. "We are enhancing the experience for both first-time homebuyers and those who want to refinance. By providing a seamless online and mobile platform that includes digital and human conveniences, SimpliFi Mortgage by Bank of Hawaii gives customers greater control and autonomy during the mortgage loan process."

SimpliFi Mortgage by Bank of Hawaii® uses the latest in mortgage software, making the loan application process safe, reliable, easy and fast for customers. For more information about SimpliFi Mortgage by Bank of Hawaii, visit boh.com/mortgage.