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 many property types such as, single family residential (both attached and detached), condominiums, townhouses, and commercial properties. Private Investors do both purchase and refinances.
Becoming a Private Investor in Mortgages
While being a Private Investor in Mortgages will not offer acceptable risk tolerance for all investors, it does provide higher yields and thus should receive consideration in an overall portfolio of investments for those with risk capital. To learn more, please "click" on the toolbar to the left at Becoming a Private Investor.