The homeowners source for private money loans.

The basics you need to know in securing a private money mortgage.

Private money mortgages are mortgage loans funded by a private individuals, trusts, partnerships, real estate investment groups and retirement funds. These mortgages are often referred to as a hard money loan. These mortgages are not offered by a traditional bank or lending institution. This site provides you the information needed to locate and utilize these types of lenders if the circumstances dictate that you need their services.

Private mortgages are for a not for everyone. Most borrower seeking a private mortgage or hard money loan is an individual who has difficult or challenging issues that require them to seek non-traditional financing. The issues are usually because of credit, income, or property type and condition. If this is the case, you may want to explore a private mortgage. Common problems requiring a private mortgage include:

You are currently behind on your mortgage payments.

Currently facing foreclosure or have a notice of default filed against you.

Have tried to refinance but have been turned down because of credit or income.

Need a mortgage loan immediately and are willing to pay more to have it close quickly.

Trying to finish a construction loan

Financing a commercial property that has not had a steady income stream.

Financing an unusual property; commercial, hospitality or investment property.

For obvious reasons, a private mortgage will come at a higher cost than a traditional mortgage and you should always explore other mortgage financing alternatives first. After you’ve exhausted your traditional options, a private mortgage may be an excellent temporary mortgage solution for you.

Most private mortgages are for high credit risk borrowers or unusual property circumstances. As with any type of investment, the higher the risk, the higher the reward. That applies to both the borrower and the lender. If you are a high risk borrower due to your special financial condition, be prepared to give a private mortgage lender the higher return expected. In turn, your reward is financing a deal that preserves your capital or helps you to acquire the property. You can expect to pay private mortgage rates of 9 to 17% dependant on the risk and if the loan is a first or second mortgage.

Since private mortgages are used as a temporary mortgage solution , you should plan on keeping a private mortgage open for only a the time necessary to accomplish what you couldn’t do under the terms of a traditional.

Most situations requiring a private mortgage can usually be corrected within 6 to 24 months. Although a borrower requiring a private mortgage may be paying a higher mortgage rate on a hard money loan than a normal conventional loan, this option often makes sense, especially for someone facing foreclosure who will lose their home.

If you are a borrower, real estate professional or mortgage broker who is in need of a private mortgage we can help you. The equity in your property is the single most important factor for qualifying for a private mortgage because it helps offset the risk to the private money mortgage investor.

Private mortgages can also be used for many property types such as, homes, condominiums, townhouses, commercial properties, hotels, motels, construction loans and other real estate secured investments.

Use our site to assist you making a plan and contacting the appropriate lender. If you need immediate help, take a moment to complete our quick app form and we will contact you shortly. Please note. All information is strictly confidential. We are a direct mortgage lender, so your information is not shared or sold to any other parties.

 

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