Why use a Private Mortgage?
Private Mortgages are a financing option for any borrower with a unique financial situation that does not fit regular bank underwriting standards. Funds are loaned to borrowers by private lenders, rather than a bank or credit union. Currently conventional lenders (banks, credit unions etc) have very strict lending standards and income qualification.
In contrast, private mortgages are much more flexible in loan approvals. The terms and conditions for private mortgages can be more customized to the borrower and most loans are interest only payments. With an extensive network of lenders ready and able to assist during a time of financial need, a private mortgage is an option to secure real estate financing when conventional financing in unavailable.
Common Reasons why Borrowers use Private Mortgages:
- Debt Consolidation
- Damaged Credit
- No Credit History
- Building a Real Estate Portfolio
- Home Renovation
- Fast Financing
- Unexpected Family Event: Divorce, Injury, Illness
- House Flipping
- Privacy Concerns
- More Money Than What a Conventional Lender will Approve
- Qualifying Challenges with a Conventional Lender
- Purchasing a Unique Property
- Non Confirmable Income
- Only Need a Short Term Loan