Commonly Asked Questions
When you apply for a private mortgage with a private lender you are evaluated based on your property, your income, and any down payment or equity that may be involved in the deal. If you qualify for approval you proceed to negotiating mortgage terms with the lender.
Private lenders typically charge a 8-20% interest rate. By providing a private mortgage for those with poor credit, unstable income, or without a long credit history, the lender is taking on a greater risk so the interest rates are accordingly higher than a traditional mortgage.
Private mortgage lenders will secure their loan through your property so while they are considered higher risk than a traditional mortgage they will be less risky than an unsecured loan. It is important to understand the structure, terms, and conditions of your private mortgage when you sign on.