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Portfolio Loans

Portfolio Loans

Portfolio Loans | SouthStar Bank What is a portfolio loan? A SouthStar Bank portfolio loan is originated and funded right here at our institution, and never moves into the secondary mortgage market. It’s called a “portfolio loan” because it’s always going to stay in our portfolio. That means we can rely on our relationship with the customer to determine loan eligibility even if they don’t meet the typical mortgage profile. For example, meet Annie. Annie is a freelance marketing consultant with variable income.  Her credit score has taken a few hits but we’ve known Annie for years. She’s been a customer in good standing and a part of our community for a long time. Her business is picking up, and she’s starting to get back on her feet. Purchasing a home could improve her stability, her credit, and her children’s lives. She may even want to purchase a four-plex, so she can start earning some rental income on the other three units.  Annie comes to SouthStar Bank and meets with one of our loan officers to discuss the Star Advantage Loan. We look at her plans, her property, and total financial picture and make a decision about whether she’ll be a good risk. If we agree the loan makes good business sense, we move forward, even though she would not have been eligible for a loan through Fannie Mae and Freddie Mac. Are portfolio loans a good idea? A portfolio loan generally isn’t riskier for the consumer than any other kind of mortgage. It is riskier for the banker, which means it can come with higher interest rates and fees. Whether they are a good idea for you depends on your unique situation and goals. Would you be able to qualify for a conventional mortgage with just a little more work and time? Do you have aspirations towards becoming a landlord or real estate investor? Are you trying to purchase a non-traditional property or unique property? Of course you should carefully consider the total picture before you make your final decision. Our loan officers are happy to discuss the risks and benefits of a portfolio loan in your specific case. How do you qualify for a portfolio loan?  Applying for a portfolio loan isn’t just about forms and numbers. It’s about your story. Be prepared to sit down and discuss yours. Tell us what your assets are, what you hope to accomplish, what’s behind, and what’s ahead. Be thorough and be transparent, even if you think parts of your situation might create an issue. We might be willing to work with you anyway, or we might be able to walk you through specific steps you can take to address areas of concern. What are some common uses for a portfolio loan?  Many of our customers have used portfolio loans to: Purchase a residence after a bankruptcy, short sale, foreclosure, or divorce. Purchase a residence while self-employed. Purchase a residence as a foreign national. Purchase a rental property or a fix-and-flip […]

Finding the most qualified mortgage lender starts here

Finding the Most Qualified Mortgage Lender Starts Here Most Qualified Mortgage Lender | SouthStar Bank SouthStar Bank designs a home loan experience specifically for you. We realize you’re one of a kind. Your mortgage should be too. If you want the opportunity to see what’s possible for your mortgage lending future, start here.  We pride ourselves on having the ability to provide traditional local bank service with big bank opportunities. Our traditional mortgage lending offers extensive options to serve you better such as: Star Advantage Program: Home loans for unique situations (also known as Portfolio Loans) Traditional Fixed and Variable Rate Mortgages: Conventional (Fannie Mae & Freddie Mac), FHA, Jumbo, Rural Living, USDA, VA Low Down Rural Acreage Refinance Interim Construction to Permanent Financing Trust a mortgage banker in your community that can guide you through the process Close to home, a mortgage banker can be a reliable ally. They will take the time to get to know you and personalize lending solutions to your specific needs. It doesn’t have to be tough to get a mortgage loan. Your Mortgage Loan Officer will work with you to gather the necessary documentation for a loan decision. Although different loan types are available, the application and review process is much the same. To give you a better idea of what to expect, here’s a synopsis of the mortgage loan process: 1. Application Your MLO will work with you to finish your application and gather any papers required for underwriter assessment. Regulatory disclosures are made when needed. 2. Pre- Approval To make an initial credit decision, the Underwriter will analyze your application and paperwork. If the loan is initially authorized, your loan officer will advise you on the conditions that must be met in order for the loan to be issued, and collect any additional paperwork as required. Many real estate agents will require you to complete this step prior to viewing properties, especially in competitive Central Texas markets such as Austin. Pre-approval will give you an accurate understanding of budget and allow you to make a quick, competitive offer when you find the property. 3. Appraisal Once a property is selected, the Appraisal Reviewer and SouthStar Bank will organize the receipt of the property appraisal. The appraisal and estimated value of the property will be reviewed by the Appraisal Reviewer. You will receive a copy of the appraisal once it has been accepted. 4. Approved for Closing The Processor will re-submit the file to underwriting for final evaluation once all of the conditions have been completed. The Loan Closer will compile and submit the loan closing document package after final approval is received. 5. Ready for Closing Your loan officer will walk you through the final numbers and disclosures and answer any questions you may have. The Closing Agent will confirm the amounts required to close with you and set a date for the closing, at which time you will sign the final loan documents. Get started today! Buying a home is no easy task. There are piles […]

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