Portfolio loans are non Freffie Mac, Ginnie Mae nor FHA/VA loans. They have their own rules and guidelines set and determined by the lender. The lender also services this loan and your loan will often not be sold. These loans are used as a resort for those who cannot go the traditional route but still need funding. Typically, they are 5-10 year fixed loans amortized over 30 years, but, adjust once per year, after their 5-10 year fixed term is up.
Once your fixed term is drawing near, your credit problem will have likely reached its wait period term and you can refinance back into a conventional or traditional mortgage. There are no prepayment penalties ever.
Typically fees are 0% – 1.5% points depending on the rate you choose. Rates are between 4.875%-8.99% depending on your situation – 8.99% being the most extreme (i,e, recent foreclosure, 500 FICO, etc)
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