Private Mortgages
When Traditional Financing Isn't the Right Fit
Not every borrower fits conventional lending guidelines.
If you've been declined by a traditional lender, have a time-sensitive financing need, or are working through a temporary financial challenge, a private mortgage may be an option worth exploring.
Private mortgages are not the right solution for everyone, but in certain situations, they can provide short-term flexibility while you work toward longer-term financial goals.
I'll help you understand how private mortgages work, explain the advantages and considerations, and determine whether they're appropriate for your situation.
What is a private mortgage?
A private mortgage is financing provided by an individual investor or private lending company rather than a traditional financial institution.
Private lenders often use different qualification criteria than banks or credit unions, making them a potential option for borrowers whose circumstances don't align with conventional lending guidelines.
Private mortgages are commonly used as short-term financing while working toward qualifying for traditional mortgage financing.
When might a private mortgage be appropriate?
A private mortgage may be worth considering if you:
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Have been declined by a traditional lender.
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Need financing quickly.
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Are self-employed with complex income.
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Have experienced recent credit challenges.
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Need temporary financing during a transition.
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Have a unique property or financial situation that falls outside standard lending guidelines.
Every situation is different. Before considering a private mortgage, we'll review whether other financing options are available.
Understanding the costs.
Private mortgages often differ from traditional mortgages in several ways.
Depending on the lender and your circumstances, they may involve:
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Higher interest rates.
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Lender or brokerage fees.
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Shorter mortgage terms.
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Different qualification requirements.
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A plan to transition to traditional financing when appropriate.
Understanding the full cost of borrowing is an important part of deciding whether a private mortgage is the right choice.
Is a private mortgage right for you?
A private mortgage should generally be viewed as one possible financing solution—not the default option.
Before moving forward, we'll discuss:
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Why traditional financing wasn't available.
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Whether alternative lenders may be an option.
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Your short- and long-term financial goals.
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Your exit strategy at the end of the mortgage term.
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The total cost of borrowing.
My goal is to help you make an informed decision based on your overall financial situation.