When it comes to securing a mortgage, there are a variety of options out there for everybody – regardless of their credit scores. Fortunately, for those individuals who have been turned away by big banks and lenders, private mortgage loans exist as a fantastic route that they can take towards getting a house.
What are Private Mortgage Loans?
Unlike loans from typical sources like banks, private mortgage lenders are lenders who recognize that not everybody fits the profile required to receive approval for a mortgage. For those who are self-employed, for instance, it can be difficult to receive approval from standard sources, making private mortgage loans an attractive option.
Is a Private Mortgage Loan is right for you?
Do you think that a private mortgage loan could be the light at the end of your mortgage-seeking tunnel? Here are some of the signs that this type of loan is the right choice for you:
- Your credit score isn’t your selling feature, it is low
- Your dream property is an irregular type of property, making banks hesitant to finance your purchase
- You want to purchase your home very soon, and don’t have time to spare to wait to be approved by a typical lender
- You are seeking a short-term loan
- Much of your income isn’t verifiable
Who are these Private Mortgage Lenders?
If you find yourself relating to the aforementioned statements, there are a few types of private mortgage lenders that you can choose from to work with:
- Mortgage Investment Corporations: MIC’s are investment and lending companies consisting of groups of investors who place their money into a varied pool of mortgages.
- Individuals: Some private mortgage lenders are simply individuals with enough capital to invest in mortgages for other individuals with the hope of receiving a return.
- Syndicate: Not to be confused with an MIC, syndicates are comprised of groups of investors who pool their funds for investment on a case-by-case basis.
Crunching the Numbers
Private mortgage loans are their own entities that possess both similarities and differences from bank mortgages, such as:
- Interest rates: These interest rates fall anywhere between 10-18%
- Terms of Available: Terms on private mortgage loans fall anywhere between 1 to 35 years
- Fees: The collective fees that come along with a private mortgage fall anywhere between 3-5%
The Different Sectors in Private Mortgage Lending
Within the realm of private mortgage lending, it’s imperative to recognize that most lenders will often specialize in a certain sector of private mortgage lending, such as:
- Re-financing for debt consolidation
- Commercial properties
- Residential properties
- Rural properties
- Urban properties
How CCF can help
At CCF Mortgage, we understand that there are a variety of paths that lead to receiving mortgage approval. Each day, we assist our clients in the process of finding the option that’s best for them, and this includes helping connect our clients with reputable private mortgage lenders. Furthermore, on the other side of the coin, we additionally help those looking to become private lenders with the process. Drop us a line today to learn more about how CCF can play a part in helping you receive the mortgage approval you deserve!