Martin has investors who have been offering private mortgages through him for years. Private mortgages are used when banks are not willing to lend money because of their strict application criteria. Typically, these mortgages are used when a borrower does not meet the financial institute's lending requirements. While private mortgages always come with a higher interest rate they also allow unsuccessful borrowers to demonstrate a positive repayment history which over time allows the buyer to replace it with a conventional mortgage at a lower interest rate.
Private mortgages are used when:
- Your debt ratios are unacceptable
- A recent bankruptcy or personal problems limit your ability to obtain a mortgage from an institutional lender
- You don't have a large enough down payment
- You have non-traditional income, are self-employed or have seasonal or commisioned income
- You need to finance an unusual property, complete a renovation or new construction
- You have a commercial deal that falls outside of traditional bank guidelines
Private mortgages are not for everyone but if you need one then Martin is the lender you want to talk to.