Are you considering buying a home in Greensboro, North Carolina? If so, you're likely looking into mortgages and researching the various loan options available to you. While many people opt for traditional mortgage loans when purchasing their homes, another option - portfolio loans - may better suit your needs.
What is a portfolio loan, you ask? Simply put, it’s a loan option that is becoming increasingly popular in the real estate industry for its flexibility and customizability. It is important, however, for borrowers to understand the difference between securing a mortgage loan and a portfolio loan in Greensboro, North Carolina. In this blog post, we will explore the five key differences between a portfolio loan and a traditional mortgage. Soon you'll have all the information necessary to decide which type of loan best fits your needs. Read on for an overview of both loan types, along with some helpful tips on applying for a portfolio loan in Greensboro.
When applying for a traditional mortgage, your creditworthiness is one of the most important factors considered by lenders. Applicants with scores of 700 or higher are often preferred. However, with a portfolio loan, lenders take a wider range of factors into consideration, such as assets, income, and other investments. This means that even if your credit score is less than perfect, you may still qualify for a portfolio loan.
Portfolio loans offer more flexibility than traditional mortgages. For instance, traditional mortgages have strict guidelines and requirements set by the government agencies such as Fannie Mae and Freddie Mac. In contrast, portfolio loans are not bound by these guidelines and allow for more flexibility in the loan terms, repayment options, and interest rates.
A significant difference between portfolio loans and traditional mortgages is that portfolio loans are suitable for non-warrantable properties such as investment properties, condos, and co-ops that don't meet specific government agency guidelines. Traditional mortgages cannot be used for such properties.
Portfolio loans are known for their quick turnaround times. Traditional mortgages can take months to process. On the other hand, portfolio loans can typically be approved within days, and the funds can be disbursed within weeks.
Underwriting is the process that lenders use to determine how much risk they are taking on when issuing a loan. With a traditional mortgage, the underwriting process is generally inflexible, and the criteria are typically the same for all applicants. In contrast, portfolio loans are underwritten on a case-by-case basis, which means each application is evaluated based on the borrower's unique set of circumstances. This can make it easier for borrowers to qualify for portfolio loans than traditional mortgages.
In conclusion, portfolio loans offer distinct advantages over traditional mortgages. They offer more flexibility, are more accessible for individuals or investment properties that don’t meet specific guidelines, and they tend to be processed much faster than traditional mortgages. If you are a Greensboro, North Carolina, homeowner or a prospective homeowner looking for the best portfolio loan, you are in the right place. Jill Burgess specializes in providing expert mortgage services, including portfolio loans, to residents of Greensboro, North Carolina. With her wealth of experience in the industry, she can help you navigate the portfolio loan process and secure a loan that is best suited to your unique needs. Contact Mortgages By Jill today to get expert advice on securing your portfolio loan.
Stay updated on our news and events! Sign up to receive our newsletter.