Finance
A Connecticut buyer uses a 'portfolio loan' rather than a conventional conforming loan. This typically means:
AThe lender will sell the loan to Fannie Mae immediately
BThe lender keeps the loan in their own portfolio and may have more flexible underwriting standards✓ Correct
CThe loan is guaranteed by HUD
DThe loan requires a larger down payment
Explanation
A portfolio loan is one that the lender originates and holds in its own loan portfolio rather than selling to the secondary market. Lenders may offer more flexible terms for portfolio loans since they bear the risk themselves.
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