Private Mortgage Financing
Fast Approval | House Flips | Bad Credit
When banks say no, private lenders step in with equity-based financing starting from 4.99%
Short-term financing for house flips, real estate investors, self-employed borrowers, and clients with bad or non-traditional credit.
Fast approvals
Quick decisions and closings
Flexible criteria
Equity-focused lending
Minimal docs
Simple documentation
Credit flexible
Works with bad credit
What is a Private Mortgage?
A private mortgage is a short-term loan provided by private lenders instead of banks or credit unions. These mortgages are designed for situations where speed, flexibility, or alternative qualification is required.
Private mortgages focus primarily on the property value and available equity rather than strict income verification or credit score requirements.
They are commonly used by:
- House flippers and real estate investors
- Self-employed borrowers without traditional income
- Borrowers with bad or rebuilding credit
- Clients needing fast approvals or quick closings
- Short-term bridge financing before refinance or sale
This is strategic, short-term financing, not a long-term mortgage solution.
Who is a Private Mortgage For?
Private mortgages are ideal if:
- You are flipping or renovating a property
- You don't qualify under bank or traditional lender guidelines
- Your income is difficult to document
- Your credit score is below traditional requirements
- You need funding quickly to secure a property
If timing and opportunity matter more than perfect paperwork, private financing may be the right fit.
Private Mortgage Rates
Private mortgage rates start from 4.99% and vary depending on:
- Loan-to-value (LTV)
- Property type and location
- Credit profile
- Deal complexity
- Exit strategy (refinance or sale)
Because private mortgages are short-term, the focus is on certainty of funding, flexibility, and speed rather than the lowest possible rate.
Qualification Requirements
Private lenders take a simplified, equity-based approach.
Typical requirements include:
- Minimum down payment of 20% to 35%
- Last 3 months of bank statements
- Property details such as purchase price, value, and intended use
Traditional income verification and stress tests are generally not required.
Fees and Closing Costs
Private mortgages involve upfront costs. Understanding them early is important.
Common fees include:
- Appraisal fee
- Legal fees for two lawyers (one for the borrower and one for the lender)
- Lender fee
- Broker fee, depending on the structure and complexity of the deal
For purchases, additional costs may apply:
- Land transfer tax
- Title insurance
All fees and costs are reviewed upfront so there are no surprises at closing.
Key Features of a Private Mortgage
Short-term financing
Typically 6 to 24 months
Flexible payments
Interest-only or interest-accruing options
Fast approvals
Quick decisions and closings
Flexible underwriting
Guidelines adapted to your situation
Equity-focused
Based on property value and equity
Exit-strategy based
Approved based on your plan forward
Pros and Cons
Advantages
- Fast access to capital
- Works with bad credit or non-traditional income
- Ideal for house flips and value-add projects
- Flexible approval criteria
Considerations
- Higher interest rates compared to traditional mortgages
- Short-term solution, not designed for long-term holding
- Requires a clear exit strategy
Our Approach
A private mortgage should be used as a tool, not a trap.
We focus on:
- Structuring the deal correctly from the start
- Reviewing the total borrowing cost, not just the rate
- Planning the exit strategy before funding
- Helping transition to refinancing or selling
The goal is to move you forward financially, not keep you in private lending longer than necessary.
Is a Private Mortgage Right for You?
If speed, flexibility, and opportunity matter more than perfect documentation, a private mortgage may be the right solution.
Book a confidential consultation to review your deal, numbers, and exit plan.