If you need a loan with special requirements, we can find a solution for you. Our portfolio construction loans in Boston, MA, are designed to help you invest in the residential properties you want. Whether you’re a professional builder or a homeowner looking to build your dream home, we can help make it happen.
What Is a Portfolio Construction Loan?
A portfolio construction loan is a hybrid combination of—you guessed it—a portfolio loan and a construction loan. This unique loan is designed for those who want a new construction loan but may not qualify for one under normal circumstances.
New construction loans are essential for real estate investors, builders, developers, and business owners. They allow the parties involved to get the working capital they need. You need capital to build new housing developments, vacation rentals, and office buildings, after all. These loans can benefit individuals who need to finance their own new construction home, too.
However, what happens to the people who can’t qualify for normal loans, especially through no fault of their own? Maybe you’re self-employed or have bad credit. Maybe you had a bad business deal in the past that makes you ineligible. You might make more than enough money to cover the interest and cost of the loan, but problems like those could still make you ineligible.
This is where our portfolio construction loan comes in. We’ll break down the two parts of this loan in the sections below.
Private Business Portfolio Loans
A portfolio loan is a special type of loan that usually has more relaxed requirements than traditional loans. However, to make up for those relaxed requirements, the loan often has stricter repayment requirements, higher closing costs, higher interest rates, or other special additions. Essentially, it’s a type of loan that balances out the risk of a non-typical buyer with more profit for the lender.
A portfolio loan is special because it belongs to the bank or lender for the entire life of the loan. This is where the name “portfolio loan” comes from.
Portfolio options are excellent for those who have imperfect credit. They also cover loan amounts that are too large for traditional real estate loans. Additionally, you can refinance a portfolio loan later. This’ll turn it into a traditional mortgage that can take advantage of more competitive rates.
Construction, Vacation, and Rental Property Loans
A construction loan is what many non-owner builders and investors use to fund their projects. These rental loans and new construction loans are designed to cover immediate construction costs. After construction is over, the loans are repaid to the construction lenders.
However, new construction lenders can help the average Joe, too. Some lenders offer what’s called a two-in-one loan, which covers the construction period. When construction is over, the loan turns into a traditional mortgage.
Style Mortgage For Your Construction Loan Needs in Boston
With the help of our portfolio construction loans in Boston, MA, you may be able to build the home of your dreams, even if your credit isn’t perfect. Contact Style Mortgage at (508) 223-5206 whenever you’re ready to explore your options.