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Sam · 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.

Guest

Is it possible to finance a condo/home with poor credit through private lenders?

brian1 · Posted: Thu Jun 19, 2008 11:26 am Post subject:

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

Guest

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

jameshogg · Posted: Thu Mar 12, 2009 11:17 pm Post subject:

Hi jesse,

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.

Thanks

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