First of all, happy Easter!
Today is part 2 of yesterday’s post:
I will not have a two year post college work history until October (read about it here). I’ve been doing some research and I found that a portfolio lender, as opposed to a traditional mortgage lender, could make an exception to the two year rule (especially when you pass every other requirement with flying colors).
Here’s the main difference between a traditional mortgage lender and a portfolio lender:
Traditional mortgage lender: They often sell their loan (your mortgage) to other investors. By doing this, they make a profit and minimize risk.
Portfolio lender: They hang on to the loan (your mortgage) and collect your payments month after month. I’m not sure specifically as to why, but this gives them more room for creativity and flexibility.
So let’s say someone has a down payment, excellent credit, a good, steady income, two lines of credit, and they are just a few months shy of having a two year (post college) work history…the portfolio lender can give them the loan anyway.
Traditional mortgage lenders just follow the rule book.
I’m not saying I’m in a rush to buy a house just for the sake of buying a house. Nor am I saying that I have the down payment. (I’m getting closer and closer though!)
I’m just saying, if I find a great deal/house at $500,000 and I have $17,500 saved up before October, I might seek financing from a portfolio lender.