A private mortgage is a loan secured against real estate, in which the lender is not a financial institution. Instead, the lender may be a friend, family member, individual investor or group of investors. Banks are highly regulated and have strict guidelines surrounding their lending practices. All too often this marginalizes some borrowers who can’t fit into the cookie cutter criteria of the bank. Private mortgages are useful as an alternative to meet borrowers needs. Private commercial lenders are available to fill in the gaps when you need financing quickly, or for a venture that traditional lenders will not approve.
Typically private mortgages will be a shorter term strategy for a borrower as the interest rates tend to be higher and do not always have the features and flexibility that institutional mortgages provide.
Rates and terms can change without notice. All transactions are subject to underwriting and written approval.