Secondary Market Loans

By
April 22, 2020

Loans and covid19

I spoke with a local lender today to find out what changes may be happening to the lending world with covid19.

Loans that are through the secondary market have become harder to obtain due to the investors of these loans.  Credit scores and LTV have become stricter.  

Secondary market loans are the loans that the local bank will lend to the buyer and fund, but then they will sell the loan off to another company and then you will be paying that company back.

Portfolio Loans are loans that are kept "in house", meaning the bank will hold the loan and not sell it off.  The In House loan may require 20% down, meaning the bank will loan 80% of the appraised value.