Bad Credit Loans
Private mortgages are funded by individuals or groups who want to make a better return on their investment than 2% in a GIC at their bank. These groups are commonly known as MICs – Mortgage Investment Corporation. They are comfortable with investments that are secured by real estate and they will look past bad credit, bankruptcy, insufficient income and environmental or zoning issues. Basically they invest in people and property and not reports and numbers.
Some private mortgage investors only invest in residential housing some will do commercial. Every investor is different and that’s why you need a mortgage broker. They each have their own appetite and lending comfort zone. Private mortgage investors will even look at farm mortgages, mobile home mortgages, a cottage or vacation property, land and a small variety of commercial.
Private mortgage lenders will actually listen to your story and make a decision based on all of the information. They will look at bank statements, recent appraisals, and employment letters, whatever you can provide to show that you and your property are good investments.
Guidelines and facts:
- Rates: Usually higher rates than bank posted rates, although not always.
- Term: Typically 6 to 12 months, longer if there is a valid reason.
- Payments: Usually interest only but amortized payments are possible.
- Fees: Case by case. Depends entirely on the overall deal – usually 1 to 3%
- Region: Typically they invest in their own area(s).
- Approvals: Approvals can take from an hour to a day.
- Funding: Funding can happen in less than a week but generally in 2 weeks.
To get access to private lenders and mortgage investors you need to deal with a Mortgage Broker having access to private funds.. .this is where we come in.