What mortgage programs are available in Miami?

Lifetime Capital Funding offers FHA (3.5% down, $667K Miami-Dade 2026 limit), VA (0% for veterans), conventional (3-5% down via HomeReady or standard), USDA (0% for eligible rural areas, $433,020 limit), jumbo up to $20M, DSCR investment loans, bank statement loans for self-employed buyers, foreign national programs (25-40% down, no US credit required), fix-and-flip loans, bridge loans, reverse mortgages, and HELOCs. We serve all of Miami-Dade and Broward counties.

What is a DSCR loan and who qualifies?

A DSCR loan qualifies real estate investors based on the rental income of the investment property, not personal income or tax returns. If the property earns enough rent to cover at least 1.0x the monthly mortgage payment (DSCR of 1.0+), you may qualify. Minimum 20-25% down, 660+ credit score. No W-2s, no tax returns, no employment verification. Ideal for self-employed investors, foreign nationals, and buyers with multiple properties.

What is a bank statement loan?

Bank statement loans let self-employed borrowers qualify using 12-24 months of personal or business bank deposits instead of tax returns. Lenders apply an expense factor, typically 25-50% depending on business type, to estimate qualifying income. This works well for business owners who write off expenses and show lower net income on paper than they actually earn. Requirements: 620+ credit, 2+ years self-employment, and usually 10-20% down depending on the property.

Can non-US citizens get a mortgage in Miami?

Yes. Foreign national programs let non-US citizens purchase property in Miami and South Florida without a Social Security number or US credit history. Requirements typically include 25-40% down depending on property type, a valid passport, 12-24 months of bank statements showing assets and income, and proof of foreign address or current visa status. DSCR rental income qualification is also available for foreign investors who want to avoid income documentation entirely.

What is the difference between FHA and conventional loans?

FHA loans require 3.5% down with a 580 credit score and have mandatory mortgage insurance for the life of the loan. Conventional loans require 3-5% down with a 620+ score and allow PMI removal at 20% equity. FHA is better for lower credit scores; conventional is better for borrowers with 20%+ down or strong credit.

What is a portfolio loan and how is it different from a conventional mortgage?

A portfolio loan is a mortgage that the originating lender keeps on its own balance sheet rather than selling to Fannie Mae, Freddie Mac, or another secondary market investor. Because the lender holds the risk, it can set its own underwriting guidelines instead of following agency rules. This means portfolio lenders can approve borrowers and properties that don't fit the Fannie/Freddie box, such as investors with more than 10 financed properties, self-employed borrowers with complex tax situations, non-warrantable condominiums, and mixed-use properties.

Who benefits most from a portfolio loan in Miami?

Several borrower profiles benefit from portfolio lending in Miami. Real estate investors who already have 10 conventional loans (the Fannie/Freddie limit) and need more financing use portfolio loans to keep growing. Self-employed borrowers whose tax returns show significant deductions get declined by conventional underwriting but qualify under portfolio bank statement or asset-based guidelines. Foreign nationals without U.S. credit history often have no conforming path. Buyers of non-warrantable condos in Miami's high-rise market also rely heavily on portfolio lenders since agency guidelines exclude those buildings entirely.

What does a portfolio loan cost compared to a conventional mortgage?

Portfolio loans typically carry slightly higher rates than conforming loans, reflecting the lender's retained risk instead of passing it to the secondary market. The premium varies considerably, from 0.25% to 1.5% above conventional rates depending on the complexity of the loan and borrower profile. Some community banks price portfolio loans competitively for low-risk borrowers like high-income W-2 employees buying unusual properties. More complex scenarios, like a self-employed investor buying a non-warrantable condo with bank statements as income documentation, will see higher pricing than a standard conforming loan.

Is there a limit to how many portfolio loans I can have?

No, there is no agency-mandated limit on portfolio loans because portfolio lenders are setting their own rules. Fannie Mae limits a single borrower to 10 financed properties (including their primary residence). Portfolio lenders do not have that cap. Investors in Miami building large rental portfolios regularly work with portfolio lenders specifically because it allows them to continue acquiring properties after maxing out their conventional loan count. Each portfolio lender has its own internal concentration limits, but those are internal credit policies, not regulatory requirements.

Can I use a portfolio loan to buy a non-warrantable condo in Miami?

Yes, and this is one of the most common uses of portfolio lending in Miami's condo market. A non-warrantable condominium is one that fails to meet Fannie Mae or Freddie Mac's project approval guidelines, typically because more than 35% of units are investor-owned, the building has pending litigation, the HOA budget is underfunded, or there is a concentration of short-term rental activity. Portfolio lenders evaluate the property on their own criteria. Many Miami high-rise buildings in Brickell, Edgewater, and Sunny Isles that cannot get conventional financing can be financed with a portfolio loan at reasonable terms.

How do portfolio loan requirements differ from conventional underwriting?

Portfolio lenders write their own credit policies. Broadly, most portfolio programs still want a credit score of at least 620 to 680, though some go lower with compensating factors like high equity or significant reserves. DTI limits vary, and portfolio lenders often accept higher DTI than the 43% or 45% caps at conventional. Income documentation is where portfolio lending diverges most sharply. Many portfolio programs accept bank statements, profit-and-loss statements, asset depletion, or DSCR qualification on investment properties, none of which are available on conforming loans without agency overlay approval.

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Portfolio Loans Miami: When a Lender's Own Rules Beat Fannie and Freddie's

Published: June 1, 2026 · Updated: June 2026 · Category: Non-QM Programs · NMLS #2583712

Most mortgages in the U.S. are sold to Fannie Mae or Freddie Mac after closing. The lender originates the loan, collects a fee, and ships the note off to the secondary market. Portfolio loans work differently. The lender keeps the loan, collects interest on it, and answers only to its own credit committee, not to agency guidelines. According to the Federal Reserve's Flow of Funds data (Q4 2025), depository institutions held roughly $2.9 trillion in residential mortgage loans on their own balance sheets, demonstrating how substantial the portfolio lending market remains.

Portfolio loans exist because not every borrower fits Fannie Mae's rules, and not every good loan gets made through conforming channels.

Who needs portfolio loans: Investors with more than 10 properties. Self-employed buyers with aggressive tax deductions. Foreign nationals. Non-warrantable condo buyers. Mixed-use property owners. Borrowers who are excellent credit risks by any practical measure but don't fit the agency box.

The Core Difference: Who Holds the Risk

Conforming mortgages follow Fannie Mae and Freddie Mac's underwriting guidelines because those agencies buy the loans. Agencies have rigid standards: income documentation rules, credit score floors, property eligibility requirements, and a hard cap of 10 financed properties per borrower. Break any of those rules and the loan can't be sold to the secondary market.

Portfolio lenders bypass this entirely. They fund with deposits or their own capital, hold the resulting mortgage, and decide on their own what risk they're comfortable taking. A community bank in Brickell or a specialized Non-QM lender can approve a self-employed borrower with 14 rental properties and a non-warrantable condo purchase if its own credit team says the deal makes sense.

This flexibility has a price, usually a slightly higher rate or more conservative LTV. But for borrowers who have no conforming path, "slightly higher" is irrelevant. There's no conforming alternative.

Who Actually Uses Portfolio Loans in Miami

The Investor Past Loan Number 10

Fannie Mae's guidelines cap a single borrower at 10 financed properties. That sounds like a lot, but serious real estate investors in Miami get there faster than they expect. A primary residence plus 9 rentals in Hialeah, Little Havana, and Kendall puts you at the wall. Portfolio lending is the only path forward. DSCR loans are one subset of this; true portfolio lending is broader.

The Self-Employed Business Owner

Miami has an enormous population of entrepreneurs, restaurateurs, contractors, and consultants. Many of them are genuinely wealthy by any normal measure but show modest income on their tax returns because they max their business deductions. Conventional underwriting counts taxable income, which can be a fraction of actual cash flow. Portfolio lenders can look at bank deposits, business revenue, or asset levels to make the credit decision instead.

The Foreign National Buyer

Latin American buyers are significant players in Miami's condo market. The National Association of REALTORS International Transactions report (2025) noted that foreign buyers consistently rank Miami among the top U.S. markets they purchase in. Most have no U.S. credit score, no tax returns, and no domestic income documentation. Conforming financing doesn't exist for this buyer. Portfolio lenders offering foreign national programs fill that gap directly.

The Non-Warrantable Condo Buyer

Miami has hundreds of high-rise condo buildings. A significant number of them fail Fannie/Freddie's project approval requirements: investor concentration above 35%, pending litigation, delinquent HOA dues, commercial space exceeding allowable percentages, or high short-term rental activity. Buildings in Brickell, Edgewater, and Sunny Isles routinely fall into this category. Portfolio lenders approve deals in these buildings every week using their own project review criteria.

Miami's condo market runs on portfolio financing. Many of the most desirable buildings in Brickell and Edgewater can only be financed through lenders who hold the loan themselves.

What Portfolio Loans Cost

Portfolio loans are not necessarily expensive, but they're priced to reflect retained risk. Here's a realistic comparison:

Scenario	Conforming Conventional	Portfolio Loan	Premium
W-2 employee, warrantable condo	Available, standard rate	0.25% above conventional	Low (unusual property only)
Investor, properties 11+	Not available	0.5%–1.0% above DSCR market	Only option
Self-employed, bank statements	Not available	0.75%–1.5% above conventional	Only option
Foreign national, no FICO	Not available	1.0%–2.0% above conventional	Only option
Non-warrantable condo, investor	Not available	0.5%–1.25% above DSCR market	Only option

For borrowers who have a conforming alternative, portfolio loans are a small premium for property flexibility. For borrowers without a conforming path, the rate comparison is irrelevant. There's no alternative.

Underwriting: What Actually Matters to a Portfolio Lender

Portfolio underwriting standards vary more than conforming standards because every lender writes its own guidelines. But certain factors matter consistently across portfolio programs:

Credit score. Most portfolio programs want 640 or better, though some go to 620 with meaningful compensating factors like 35%+ equity and 12 months reserves.
Reserves. Portfolio lenders tend to want more liquidity than conforming. Six to twelve months of PITIA reserves post-close is common. High-net-worth foreign national buyers may need 24+ months.
Down payment or equity. Most portfolio programs require 20% to 25% down on purchases, and some non-warrantable condo programs want 30%. Higher equity reduces risk the lender can't easily hedge.
Property type logic. The lender needs to believe the collateral is real. Unusual properties get appraised and reviewed more carefully, not rejected by default.
Exit or income sense. For investment properties, the lender wants to see that rent covers the payment or the investor has clear cash flow. For primary residences, income documentation, whether conventional or alternative, needs to support the payment.

Portfolio Loans vs. DSCR: What's the Difference

DSCR loans are a subset of portfolio lending. A DSCR (debt service coverage ratio) loan qualifies the borrower based on the rental property's cash flow rather than personal income. It's a portfolio product because no agency will buy it. But portfolio lending is broader than DSCR. Portfolio programs can include:

Bank statement loans for self-employed borrowers (primary or investment)
Asset depletion loans for retirees or high-net-worth individuals
Foreign national loans with international income documentation
Investor portfolio programs for borrowers past the 10-property limit
Non-warrantable condo loans using the lender's project review standards
Bridge loans with short terms and equity-based qualifying
Mixed-use property loans with residential and commercial components

Does Your Deal Need Portfolio Lending?

Tell us about your property, your income situation, and how many properties you already have. We'll tell you whether a portfolio loan works and what to expect on rate and terms.

Talk to a Mortgage Advisor

How to Find a Portfolio Lender for Miami Properties

Big banks rarely offer true portfolio programs with flexibility. Their portfolio products often just mean "we haven't sold it yet." Real portfolio lending with genuine underwriting flexibility comes from community banks, credit unions with real estate focus, and Non-QM mortgage companies that retain their production.

The Non-QM market in South Florida is active and growing. Competition among portfolio lenders for good borrowers with equity and reserves has pushed pricing and terms in a better direction since 2022. If you were quoted an impossible rate two years ago on a portfolio deal, it's worth checking again.

Frequently Asked Questions

Sources

Federal Reserve, Financial Accounts of the United States (Z.1), Q4 2025
Federal Housing Finance Agency, Fannie Mae Selling Guide, 2026
National Association of REALTORS, International Transactions in U.S. Residential Real Estate, 2025
Consumer Financial Protection Bureau, Ability-to-Repay and Qualified Mortgage Standards, 12 CFR 1026
Miami Association of REALTORS, South Florida Market Statistics, Q1 2026

Related Programs

Non-Warrantable Condo Loans

Financing for buildings Fannie and Freddie won't touch. Portfolio lenders are your path.

DSCR Investment Loans

Qualify on rental income. No personal income documentation required.

Bank Statement Loans

Self-employed income qualification using 12 to 24 months of deposits.

Foreign National Loans

No U.S. credit history, no SSN, no problem. Miami portfolio programs for international buyers.

Brickell Mortgage

High-rise financing in one of Miami's most portfolio-dependent markets.

Lifetime Capital Funding is an Equal Housing Lender. NMLS #2583712. This article is informational and does not constitute a commitment to lend. Loan products, programs, and terms are subject to change and availability. Not all borrowers will qualify. Consult a licensed mortgage professional for advice specific to your situation.