A specialized portfolio loan is a type of mortgage kept and serviced by the lender rather than being sold to investors on the secondary market. Because lenders retain these loans in their own portfolio, they can offer more flexible underwriting guidelines, making them ideal for borrowers who don’t fit traditional loan criteria—such as self-employed individuals, real estate investors, or those with unique income sources. Portfolio loans often feature customizable terms, creative financing structures, and the ability to finance non-traditional properties or multiple homes under one loan.