Posted: Wed Jul 07, 2004 12:58 am Post subject: Private Mortgage
Private Mortgage is a type of mortgage, which is granted by the private lenders.
Features Of Private Mortgage:
Financing Alternative - It is a good financing alternative.
Made By Private Lenders - In this the mortgage loans are made by the private lenders instead of other traditional sources such as, banks, landing institutions or government agencies.
High Rates Of Interest - The interest rates on private mortgage are very high, almost double of the bank rates.
Facilitates Borrowing - A borrower can borrow money from the private lender, even if he has a very poor credit rating or the lack of equity.
Inherits Risk Factor - It carries an element of risk along with it, as it has very high rate of interest.
Requires Mortgage Insurance - It requires mortgage insurance, known as private mortgage insurance. Private mortgage insurance protects the lender if the borrower defaults on the loan.
Gail Guest
Posted: Thu Jun 19, 2008 10:16 am Post subject: Home Purchase
Is it possible to finance a condo/home with poor credit through private lenders?
There are private money lenders for almost all types of real estate. It is a secured loan. Most will require a large equity position. 30% or more seems to be the standard. In a down market it may be more. These are band aid loans in most cases and are usually short term loans with a balloon payment after a short time.
Brian _________________ Licensed Broker 50 states http://www.aimwithfocus.com
Need quick advise email or PM Glad to help
jesse Mise Guest
Posted: Thu Mar 12, 2009 1:07 pm Post subject: Private Money Lender for TN with 2 year balloon
Need $115000 for 4 bdr in Knoxville TN for payoff and extra cash. Appraised recently for $155,000. Borrower and partner has multi-million dollar manufacturing contract starting this summer that will provide needed cash flow profits for balloon payment
You can contact any private lender and check out if he can offer you a loan of the required amount. But the lender may check your credit report before approving the loan. Moreover, there are chances that you will have to go for a mortgage insurance as well.
Sam
