[quote=SK in CV]… Conventional loans today are generally 20% down and don’t require PMI, though some lenders are free to make up their own rules…[/quote]
Yes, regardless of amount borrowed, portfolio lenders are actually conventional lenders who make up their own rules and keep these loans “in-house” but very rarely originate mortgages higher than 80% LTV. Some (ex: JC Morgan Chase) originate Freddie Mac-backed (FHLMC) loans for their portfolio but most mortgages in their portfolio are not GSE-backed loans. JCM Chase keeps FHLMC loans in their own portfolio and typically sells off their FNMA-backed loans.
Some CA conventional lenders have several mtg products which are NOT backed by GSE’s. These mortgages are typically ARMs tailored to the individual borrower’s needs. The bulk of these borrowers are high net-worth individuals with excellent credit. These mortgages are NOT “sub-prime” products.
