Understanding Portfolio Loans

A portfolio loan is fairly similar to the more popular types of loans available except the lender keeps the debt “in house” and earns interest on the loan versus it being serviced by another lender like a big bank such as Wells Fargo or Chase. Most portfolio loans are available from private lenders and are a great option for those that may not be able to qualify with a larger bank for a conventional mortgage.

Why Choose A Portfolio Loan?

Choosing a lender and a loan type can be overwhelming. It is a big financial commitment and we know that the home buying process comes with a lot of information and questions. If you happen to be someone that has had a challenging financial past or formidable issues when it comes to credit history, that doesn’t mean you aren’t able to purchase a home.

Portfolio loans are a good option for those that have filed bankruptcy, have bad credit, tax issues, or good income but lack credit. Some people think that because they have credit issues it means they cannot purchase a home, but that is not the case. If you have bad credit or no credit, and want to purchase a home, a portfolio loan might be a good option for you.

If you are in the market to purchase a property but it falls outside the guidelines for a conventional loan, a portfolio loan may also work in this situation. For example, if you are looking to buy a home that might not pass an inspection because of the repairs needed, a portfolio loan could be an option for you.

Is A Portfolio Loan Right For Me?

Portfolio loans are not for everyone so it’s important to evaluate your personal situation before making the decision to choose a portfolio loan. Portfolio loans are good for those buyers that want to secure financing on short term notice. A drawback for these types of loans is that they can cost more than conventional financing. Due to the large down payment, they are not typically a good option for a first time buyer but would be a good idea who has a large sum of cash but not stellar credit.

Contact Us Today!

If you are researching your options to purchase a home and aren’t sure what would be the best route for you to take, you can always contact us to answer your questions. We would be more than happy to discuss your options and answer any questions you may have, so feel free to give us a call at Commonwealth Mortgage Corp in Conroe, TX today!

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