How Private Mortgages Work
Understanding the complete process, timeline, and key differences from traditional lending. Private mortgages offer a faster, more flexible path to financing when you need it most.
What is a Private Mortgage?
A private mortgage is a loan secured against real estate property, provided by private individuals or institutional investors rather than traditional banks or credit unions. These lenders use alternative underwriting criteria focused primarily on property value and equity rather than conventional income verification.
Secured by Property
Your property serves as collateral, making it lower risk than unsecured loans
Flexible Terms
Customized solutions based on your specific situation and needs
Streamlined Approval
Decisions in weeks, not months, when timing matters
Alternative Criteria
Approval based on equity and exit strategy, not just credit score
Borrower Protection Through Documentation
We verify all necessary documentation to ensure you have a viable exit strategy and can successfully transition out of your private mortgage.
Income Verification
We review bank statements, cash flow, and business financials to ensure you can afford the mortgage and have a path to traditional refinancing.
Exit Strategy Planning
Documentation review helps us identify whether you can successfully exit through refinancing, sale, or other means.
Your Protection
Proper verification ensures you're not taking on a mortgage you can't successfully manage and exit.
The Private Mortgage Process
Initial Consultation
Week 1Discuss your situation, property, and financing needs
Application & Documentation
Week 1Submit simplified application with property and income information
Property Evaluation
Week 1-2Professional appraisal to determine property value and loan amount
Underwriting & Approval
Week 1-2Risk assessment focused on property equity and exit strategy
Legal Review
Week 2-3Lawyer reviews and prepares mortgage documents
Funding
Week 3Funds transferred and mortgage registered on title
Private vs Traditional Mortgages
| Aspect | Traditional Banks | Private Lenders |
|---|---|---|
| Approval Focus | Income, credit score, employment history | Property value, equity position, exit strategy |
| Documentation | Tax returns and employment letters required | Bank statements, cash flow analysis, and exit strategy verification |
| Approval Time | 3-6 weeks | 1-2 weeks |
| Interest Rates | 5-7% | 8-15% |
| Term Length | 1-5 years | 6-24 months |
| Prepayment | Penalties for early payoff | Often no prepayment penalties |
Ready to Get Started?
Explore your private mortgage options with our calculator or speak with a specialist.