Portfolio loan

A loan that a lender holds onto instead of selling on the secondary market

Lenders pool and sell most loans to the secondary market in order to create money for more loans. But, to keep their in-house assets at a certain level, lenders keep some loans in their "portfolio." Since portfolio loans don’t have to stick to the rules set by secondary market institutions, like the Federal National Mortgage Association (Fannie Mae), they have some appealing qualities, like letting you borrow large amounts.

But, you may have to come up with a sizable down payment, or accept a high interest rate. Lenders who offer portfolio loans usually don’t ask for heaps of documents to prove your income or assets.