We might waive appraisals, waive surveys, waive underwriting fees or not make escrows mandatory. Of course, the best things in life aren't always free. Kirk says the bank won't do fixed-rate portfolio loans with terms longer than 15 years. They often have higher rates, too. Nevertheless, portfolio loans can help borrowers get around some of the more stringent secondary market standards.
Government programs can help as well.
The U.S. Department of Agriculture's Rural Housing Service offers a loan guarantee program that's similar to the Department of Housing and Urban Development's Federal Housing Administration program . Just like HUD, the USDA gets lenders to offer lenient loans by promising to offset their losses in the event borrowers default. The USDA mortgages , which have been around since 1991, require no down payment. Consumers who earn up to 115 percent of the area's median income can use the loans to buy properties in communities with less than 20,000 people. We still run into problems in rural America with homes not fitting the standard box that an urban or suburban property might fit.