What Is a Private Mortgage?
A private mortgage is real-estate-secured financing funded outside traditional institutional lending and is often considered when a conventional mortgage does not fit the situation.
Why private financing may be considered
Examples can include non-traditional income, credit challenges, time-sensitive transactions or properties that fall outside conventional lender criteria.
Property and equity can play a larger role
Private lenders may place significant emphasis on the property, available equity and the overall transaction, although requirements vary.
Understand all of the costs
The interest rate is only one component. Lender fees, brokerage fees where applicable, legal costs, valuation costs and other charges should be reviewed.
Have an exit strategy
Private financing is often shorter-term. A clear plan for selling, paying down or replacing the financing is an important part of evaluating the arrangement.
Ready to take the next step?
Conixi can connect you with a licensed mortgage professional to review your situation.