There’s no need to struggle when looking for a mortgage to achieve your dreams. You can benefit by getting a private mortgage, it may be the right thing for you. You can save money with a Private Mortgage? Of course.
What Is a Private Mortgage?
A Private Mortgage is a mortgage loan where the lender could be anyone from an investment firm to a family member or friend. The private mortgage lender loans the money just like a bank would, including a contract. If the borrower defaults on payments, the mortgage is insured by the lender.
If you are having trouble securing a traditional mortgage loan, take a look at a Private Mortgage. It is an alternative to a regular loan, designed to help people who can’t qualify for a mortgage. Examples of such people are those who are self-employed, working on improving a credit score, taking some equity, getting taxes under control, flipping houses, investors, or anyone starting a business.
Why Get A Private Mortgage?
- Easy to Qualify
As mentioned before, getting a loan from a regular bank or mortgage lender can be difficult for some people. There are various reasons for not qualifying for a loan. For example, self-employed or young people usually don’t have a steady work history or the credit score the bank or lender needs to see. Besides debt, there are some borrowers whose finances just don’t seem good enough to qualify for the usual loan.
- If You Like to Buy and Flip Houses and Property
A Private Mortgage could be the right choice for you, with the short payback period, if you plan on flipping the house within a six to twelve-month period. Renovating a house before you sell can boost the home’s value quickly. This would make the house or property easier to sell quickly.
- Do You Like the Idea of a “Fixer Upper?”
When it comes to houses that require extensive renovations and improvements, regular mortgage loans aren’t going to be available. Having good credit for a borrower doesn’t matter in this case. A private mortgage can allow you to fix up the house in a relatively short time so you can sell or refinance.
- Private Mortgages tend to have a Quick Approval Process
Waiting for a regular mortgage loan approval can take around 30 to 45 days, where a private mortgage approval only takes a few weeks. Private mortgage lenders don’t require as many documents as a regular lender for the loan process, because pristine credit isn’t necessary.
Things to Keep in mind
Be aware, private mortgages have a shorter payback period than regular mortgage loans. You usually have a term of six to twelve months to pay back the loan. Private mortgages tend to have higher interest rates than usual mortgages because there is the need for pristine credit is not there. Many people accept the higher interest rate in exchange for the quick approval process.
Also, arranging a private mortgage with a private mortgage loan lender, or a well-trusted friend or family member can be a wonderful idea for your financial situation. It can finance the purchase of a home without costing extra for a “middleman.” Remember this is a substantial commitment financially, so make sure it is in your best interest emotionally and financially.
Private Mortgage will help you get your mortgage dream, with freedom of choice and an easy application process. Contact our mortgage broker today and see how much you can save with a Private Mortgage loan.