How we can help:
There may be a variety of reasons why you may need to borrow money – some of them are expected and some of them are unexpected:
Debt consolidation, business Improvement, Home Renovation, Tax Debt, Car Loans, Temporary Needs, and Personal Loans
What is a private mortgage?
A mortgage that is not from an institutional or traditional lender (such a bank or trust company). Usually, the lender is provided by another person or even a business. Banks and conventional lenders apply lending guidelines which exclude many borrowers who are in fact able to pay back loans. In some cases, it might be the only option left after getting rejected from a bank. A private mortgage offers more freedom and flexibility and doesn’t have the same restrictions as a traditional mortgage, from a bank. Private lenders consider the value of the property.
Why would I use a private mortgage lender? There are many reasons:
You want to purchase an unconventional property that a prime lender or bank may not finance.
You need fast financing and don’t want to wait for a long approval process.
Your bad credit history means you are being turned down by conventional lenders.
You only need a short term loan.
You have non-confirmable income that is preventing you from obtaining a traditional mortgage.
No Credit Score or Income Statements
Bad Credit or No Credit
Interest Only Payments
There are several examples where private mortgages may be necessary as you will see below:
Due to the stress test and other qualifications of the bank.
If you are self-employed, or still young, it can be difficult to get the right paperwork in place. When this happens, the only options available is to give up, or choose a private lender.
If you’ve had a hard time getting approval from the banks, we have a wide variety of financing options available and are can offer you a variety of customized solutions to choose from, in order to meet your goals.
Private mortgage loans
Private mortgages are short- term, interest-only loans, ranging in length from 1 to 3 years. Interest only loans do not require homeowners to pay the mortgage principal down, and instead, only require interest payments each month. Private mortgage rates are the highest when compared to conventional mortgage lenders and should be used as a last resort when turned down by banks (The A side) and alternative lenders such as trust companies (The B side). The expectation is that the borrower will be able to transfer the mortgage to a conventional lender (on the A or B side) within a year to 18 months.
What criteria will they look at?
1) Property type and value: If you have a poor credit score, you are considered a riskier client and lenders need to ensure that their investment is secure, in case you default on your mortgage.
2) Income: Your income can fall into one of two categories confirmable and non-confirmable income. Confirmable income is preferred by lenders and is proven through Notice of Assessments (NOAs). Non-confirmable income, common among self-employed or commission based employees, forces lenders to use an estimate of your income based on the average income typical of your employment.
3) Down payment or equity: The maximum loan-to-value ratio on the property is 85%. That is, you need to put in a down payment of at least 15% to be approved. A lower LTV means the borrower investment in the property is higher and that he has more at stake. Private mortgage lenders consider unique properties based on a borrower’s ability to pay back a loan, not just on credit history. Every client is evaluated on an inpidual basis taking into account the points mentioned above.
What can we offer?
Who are the investors in Private Mortgages
Private mortgage lenders are inpiduals, Group of inpidual or organizations who wish to invest their surplus cash for short terms to make profits from private mortgage loans. Private mortgage lenders look beyond bad credit histories and numbers, and try and assess each case inpidually as a potential investment opportunity.
Characteristics of a private mortgage
Mortgage interest rates can range from 8-15% depending on the property, borrower, credit, mortgage position (1 st or 2 nd ) and the LTV
Fees: 1%-3% lender fee.
Terms available 3 months -2 years