The aftermath of the housing debacle that is still reverberating to some degree today, sees a completely different level of lending compared to what was available throughout much of the last decade.

New rules however have made specific types of lending essentially illegal if not non-existent. Loansportfolio subprime and private money outside of the conventional and government-backed realm still exist, yet not in their previous form. At least some of them. There are portfolio lenders, private money and subprime loans. And while many think they’re one in the same, they’re not. Here are the differences between all three.

A portfolio loan is an institutional loan made to an individual or a business that the bank intends to keep, not sell to third parties. A loan that is made to sell in the secondary market must adhere to specific lending guidelines and banks and mortgage companies like to make such loans because they can profit from the sale, replenish their lending coffers and make more loans. A portfolio loan however has to conform only to the satisfaction of the banker. Such loans may require more down payment, a slightly higher interest rate and a shorter loan term, say anywhere from three to five years and must be refinanced or otherwise replaced at that time.

A private money loan is similar to a portfolio loan but made by a private individual or group of individuals that evaluate real estate opportunities that traditional lenders or portfolio lending can’t address. Most often private loans are used to acquire and rehabilitate an existing property to be sold once the property is restored and conventional financing can be obtained.

Finally, a subprime loan is a loan made to someone with damaged credit. Subprime loans are more asset-based, meaning the value of the property and the lender’s initial equity position is a primary factor when evaluating a subprime request. Someone with poor credit seeking a subprime loan can expect to put down anywhere from 30 to 50 percent down and have higher rates, fees and points. Subprime loans, very much like private loans, fill a needed niche providing a borrower the opportunity to acquire property while repairing credit.

All three have one common goal—helping to move real estate that may be otherwise immovable. If you’re a borrower with excellent credit with a true “out of the box” scenario, a portfolio loan is in your future. If the property you’re seeking is not yet “ready for prime time” and in such shape that a traditional loan can’t be placed until the property is repaired. And the subprime product is the true “second chance” loan for those who need to get back on their financial feet.