When should you consider a private mortgage?
Private mortgages are mortgages that are held either by private individuals or corporations. They generally have higher interest rates than traditional mortgages, but there are still times when they might be the ideal solution.
Here are a few circumstances in which you should consider a private mortgage:
You have poor credit
To get a traditional mortgage with a bank, you will have to have fairly good credit. But if you have poor credit, don’t worry – you may still be able to get a mortgage through a private lender. Private lenders are often willing to look at other factors than credit alone and this means that you have a better chance of getting approved.
You are self-employed.
Like those with poor credit, people who are self-employed often have trouble getting mortgages because it is difficult to prove their income – particularly if they have a lot of tax write-offs through their business. Private lenders are often much more willing to grant a mortgage to someone who runs their own business – in fact, some private lenders specialize in self-employed mortgages.
You want to get approved quickly
The approval process for a traditional mortgage takes time. You have to gather all the necessary documents and submit them – and then you still may have to wait several days to hear back as to whether you’ve been approved. If you need to get a mortgage in a hurry, a private mortgage maybe your best option.
You wish to purchase a non-traditional property
Traditional lenders tend to have rules about the types of properties that they will give mortgages on. For example, a bank may not give you a mortgage on a mobile home or a tiny home. If you wish to buy a non-traditional property, the best way to get a loan maybe by getting a private mortgage.
Do you think that a private mortgage could be right for you? If so, contact 1Onefund Financial today. One of our agents would be happy to speak with you and discuss your options.