Financing
Understanding what types of financing programs are available is an essential part of the homebuying process. There are variations on the amount of downpayment required, the costs assocaited with each program, and the kind of service you can expect. Currently, there are four primary programs available to consumers:
Portfolio Loans
In some cases you may find that a certain building or project is of higher risk to a lender and there may not be any investors who are willing to provide a loan for your purchase. In this case, a local lender may have the ability to portfolio your loan, which means that they will lend you the money at a slightly higher interest rate, may require a larger down payment, and will keep it on their books. They will be unable to sell this loan to a 3rd party investor because it does not conform with their requirements. For this reason not all banks are willing to provide a portfolio loan and many have a limit to what they are able to provide.