Portfolio Loans

The first place most people start when buying a home is securing funds. If you happen to be a cash buyer, you may not be familiar with the many types of loans available, but it’s always a good idea to do your research as they could be a better financial decision for you. There are many ways to fund this kind of purchase, but one of the lesser known finance options is a portfolio loan.

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 Bank of America or Chase. Most portfolio loans are available by private lenders and are a great option for those that may not be able to qualify with a larger bank for a conventional mortgage.

Is It Right For Me?

Choosing the right loan and lender can be overwhelming especially if you are not familiar with the home buying process. If you happen to be someone that has had a challenging financial past or formidable issues when it comes to credit history, but 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 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.

Things to Consider

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. They typically require a large down payment which may not be possible for a first time buyer, but could be a great option for someone with a large amount of cash but lacking the credit needed to qualify for a conventional loan.

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 KC Investor Funding in Kansas and Missouri today!

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>