Private mortgage loans are becoming more popular among borrowers throughout the United States who were virtually shut out of the traditional public mortgage market during the past decade and more recently in the early 2020’s. When private mortgage loans first hit the market a few years back they were generally reserved for those individuals with exceptional credit, a stellar income history and an excellent income level. In short, private mortgage loans were a real “do it yourself” type of loan where the individual applied to a lender, received approval and then made the monthly payments.
Today’s economy is much different than that of years past, which is why the number of people interested in applying for a private mortgage loan has also exploded. Now with this increased interest in obtaining private loans and the fact that there are more lenders competing for consumers’ business, the terms of these loans can be very competitive. In addition to being competitive in terms of price, a personal mortgage can also be quite competitive when compared to traditional, government backed, mortgage loans. The reason for this difference in price is that private mortgage lenders are not backed by the government and they do not require as stringent of credit screening as government backed lenders.
A personal mortgage loan provides many different advantages to the borrower. Most notably it provides an individual with access to low interest rates and a variety of payment plans. This loan offers allow borrowers to obtain their loan approved within hours or even minutes, and offer competitive rates. Because the private lenders do not rely on the Federal Housing Administration or Fannie Mae as a source of funds, they have no financial obligation to hold your loan up-to-date if you are unable to make your loan payments or pay the entire amount as agreed upon.
As mentioned earlier, these private mortgage loans provide a variety of payment plans. With this flexibility comes a host of payment options. You may choose to pay off the loan balance on a monthly basis, make one lump sum payment or make numerous small payments spread out over several months, depending on your own individual financial situation.
When looking for a private mortgage loan lender, do your homework. This means finding out the various lending options and determining the level of customer service that each company offers. A reputable, reliable, established lender will have good reputations and an array of options for those consumers who need them.
There is no secret that loans can be expensive, and finding the right loan that will meet your specific needs and requirements can be a challenge. Finding a good and affordable private mortgage loan can be achieved when you take the time to research the process and compare loans that are available to you.