What are Private Mortgages?
Private mortgages are mortgage loans which are funded by private individuals, trusts, partnerships, real estate investment groups and retirement funds. These private mortgages are not offered by banks.
Private mortgages are for a select type of customer. The most common borrower for a private mortgage is an individual who has issues regarding credit, income, or property type. If you have an issue that is deemed a higher risk, you may want to explore a private mortgage.
A private mortgage will come at a higher cost than a traditional mortgage and you should explore other mortgage financing options first. But, if you have already exhausted your options, a private mortgage may be an excellent mortgage solution for you.
Private mortgages can be used for single family, multi-family or commercial properties.