What is a private mortgage?
A private mortgage is real-estate-secured financing provided outside traditional institutional lenders. Terms and qualification can differ significantly from conventional mortgage financing.
EXPLORE PRIVATE FINANCING
Alternative financing for situations that do not fit traditional lending.
Private mortgage financing may be considered when conventional lender requirements do not fit the borrower, property, income profile, credit circumstances or timing. Because private financing can involve different costs and shorter terms, the repayment or exit plan matters.
WHAT TO EXPECT
Start with your situation, not a product.
Mortgage options depend on factors such as the property, available equity, income, credit, existing financing and your overall objective. The right structure is specific to the borrower and the transaction.
✓Review the property, available equity and purpose of the financing
✓Understand the interest rate, fees, payment requirements and term
✓Discuss a realistic plan for repaying or replacing the private mortgage
01
Tell us your goal
Complete a streamlined Conixi request with the basics of what you want to accomplish.
02
Get connected
Conixi connects you with an appropriate licensed mortgage professional.
03
Review the options
The mortgage professional can assess your circumstances and explain financing options, costs and next steps.
UNDERSTANDING YOUR OPTIONS
Private Mortgage: what to consider
Private mortgages are loans secured by real estate and funded outside traditional institutional lending. They may be considered when a borrower, property, income profile, credit situation or timeline does not fit conventional lender requirements. Private financing can involve higher borrowing costs or shorter terms, making the repayment or exit strategy an important part of the decision.
Before choosing a structure, review:
✓The property value, existing mortgages and available equity supporting the request
✓The interest rate, lender fee, brokerage fee and other transaction costs that may apply
✓The proposed term, payment requirements and whether payments include principal reduction
✓Why conventional financing does not currently fit the situation
✓A realistic exit strategy for repaying or replacing the private financing
✓The total cost of using short-term private financing for the expected period
COMMON QUESTIONS
Frequently asked questions
Why might someone consider a private mortgage?
Examples can include non-traditional income, credit challenges, time-sensitive financing or a property or transaction that does not fit conventional lending criteria.
Are private mortgages intended to be long-term financing?
They are often used for shorter periods, so understanding how the mortgage will be repaid, sold out or replaced with other financing is important.
What is an exit strategy for a private mortgage?
An exit strategy is the plan for repaying or replacing the private financing, such as qualifying for conventional financing later, selling the property or using another clearly identified source of funds.
What costs should I review?
Review the interest rate, lender and brokerage fees where applicable, legal and valuation costs, payment terms and the expected cost of the planned exit financing.
Is a private mortgage the same as a second mortgage?
Not necessarily. A private mortgage describes the type of lender, while a second mortgage describes the mortgage’s position behind an existing first mortgage. A private lender can fund a first or subsequent mortgage.
Transparency first.
Conixi is a mortgage referral platform. We do not provide mortgages directly or offer financial advice. Mortgage availability, rates, terms and approval depend on the lender, property and applicant circumstances.
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