Our client was unemployed with poor credit, but saw the opportunity to acquire a principal residence home with the down payment from an inheritance.
Lack of income and poor credit would by themselves be conditions conducive to a private mortgage, but the kicker was that the current rental tenant refused to vacate the premises at the time of the sale. The fact that our client could not obtain vacant possession of the home, scared off even the most seasoned private lenders.
The reality was that he would need to make both mortgage payments on the new home, plus continue to pay rent at his current residence until the situation was resolved.
Our solution of a private mortgage allowed him to close on the purchase of the home, and allowed him time to ultimately force the removal of the tenant so he could move into the home.
People ask me about the type of private mortgage deals we fund and why customers would enter into a private mortgage arrangement over a more traditional bank mortgage. The above example is just the case where we can provide a private mortgage solution.
Private lenders lend using a “common sense” approach. Each application is considered based on a combination of income, credit and equity, but there are no hard rules with the lending qualification process, unlike a bank.
We understand there may be deficiencies with an application that need to be ultimately addressed, but we trust a private mortgage today, can be a bridge to more affordable lending options in the future.
As such, I want to be your “go to guy” on all your mortgage needs but especially on your private mortgage needs. If you have been turned down by your bank, it does not mean a mortgage is not possible.