Lakeside offers a portfolio ARM flexible for your home buying needs!
- Low 5/1 ARM Rates:
- 250% Conventional loans
- 625% Jumbo loans
- Down Payment
- 20% down payment for Conventional loans
- 255 down payment for Jumbo loans
- Rate Caps
- 2% Initial
- 2% Subsequent
- 5% Lifetime
GREAT for “Near Miss” Conventional Loans
- Non-warrantable Condos, Co-ops and Nonconforming multi-units
- Primary residences and second homes within 150 miles of Chicago
- Self-employed borrowers & real estate professionals
- Oddball income (e.g., capital gains, stipends, AirBnB rents, extenuating circumstances, etc)
- New credit or lack of credit history
If you are not sure, just ASK and it may WORK!!
Navigating Portfolio Loans: A Strategic Approach to Purchasing Residential Homes
In the ever-evolving landscape of real estate financing, prospective homeowners often find themselves exploring unconventional options to secure their dream residential property. One such alternative is the portfolio loan, a versatile and strategic financial tool that offers a pathway to purchasing residential homes. We will discuss the world of portfolio loans, shedding light on their benefits, eligibility criteria, and how they can empower you to achieve your homeownership aspirations.
Understanding Portfolio Loans
Portfolio loans stand apart from traditional mortgages by being held in the lender's portfolio rather than being sold to government-sponsored entities like Fannie Mae or Freddie Mac. This unique feature allows lenders to have greater flexibility in setting their own lending criteria, making portfolio loans an attractive option for those who may not meet the stringent requirements of conventional loans.
Key Benefits of Portfolio Loans
- Flexible Eligibility Criteria: Portfolio loans are particularly advantageous for individuals with non-traditional income sources, self-employed individuals, or those with credit histories that don't meet traditional mortgage standards.
- Customizable Terms: Since portfolio loans are not subject to the same regulations as conventional loans, lenders have the freedom to craft terms that align with the borrower's financial situation.
- Unique Property Consideration: Portfolio loans can be a lifeline for purchasing unconventional or unique properties that may not meet the strict appraisal standards of traditional loans. In particular, portfolio loans are great for non-warrantable condos and odd ball multi-unit properties.
- Quick Approval Process: With fewer bureaucratic hurdles, portfolio loans often have a quicker approval process, allowing buyers to seize opportunities in a competitive housing market.
While portfolio loans offer greater flexibility, lenders will still assess your financial stability. Some factors to consider include:
- Income Verification: Prepare documentation to showcase your income, including tax returns, bank statements, and other relevant financial records.
- Credit History: While portfolio loans are more lenient, a better credit history can still work in your favor.
- Property Appraisal: Be ready to provide detailed information about the property you intend to purchase, as the lender will assess its value and condition.
Strategies for Success
- Financial Preparedness: Organize your financial records and calculate your debt-to-income ratio to present a strong case to potential lenders.
- Research Lenders: Lakeside Bank specializes in portfolio loans and has a reputation for helping individuals with unique financial situations.
- Property Evaluation: Thoroughly research the property you're interested in to ensure it aligns with the lender's criteria and is a wise investment.
- Negotiation Skills: Given the customizable nature of portfolio loans, be prepared to negotiate terms that are favorable for both parties.
Portfolio loans present a valuable opportunity for individuals looking to purchase residential homes, especially those who may not fit the mold of traditional mortgage borrowers. The flexibility, faster approval process, and ability to consider unique properties make portfolio loans an attractive option in today's real estate market. By understanding the benefits, eligibility requirements, and strategies for success, you can embark on your journey towards homeownership with confidence and a well-informed approach. As with any financial decision, it's essential to conduct thorough research, consult with professionals, and make choices that align with your long-term goals.