There are a plenty of Private Mortgage lenders out there. Mortgage Investment Corporations (MIC), Mortgage Trusts, Mortgage Funds, Private Individuals – all of these fund Private Money Mortgages.
If you have Bad Credit and or cannot verify your income, don’t lose heart. Crown Funding can still help you get a mortgage. The catch is you must have plenty of equity in your house. The rate and fees will be a lot higher than the conventional mortgage rates. The rates will depend on the type of property, location of the property, LTV, who is the senior lender and to some extent on the credit.
Most private lenders like to keep the loan to value ratio under 75% of the market value of the property. If the market value of your house is worth $1 million and you owe the first mortgage of $600,000 and you need to borrow a second mortgage of $100,000, that will make your Loan To Value Ratio (LTV) at 70%. All other things being to the satisfaction of the private lender you will qualify for the mortgage easily. The private lender is secure knowing that he has $300,000 of equity cushion in the property in case if you default.
Private Money Mortgage (PMM) should be used as a band-aid loan. Private Mortgage is generally for one year term only. Use that time to fix your credit and or income issues so in a year’s time you can get back on track and refinance the private mortgage into a conventional mortgage with a bank.
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