The main reason you may consider private mortgage is, you don’t qualify with the traditional lenders like banks, Credit Unions, Trust Companies. They need a lot of documentation and even if you are more than able to make the payments, they still want you to qualify according to their lending guidelines. You are also expected to have good credit history as well. On the other hand, private mortgage is based on equity in the property. Approval is not based on credit and/or income but your ability to make the payments. In case you have a bad credit but score is over 500 and also have stable steady verifiable income.
You would use a private mortgage lender under any of the following circumstances:
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