Are you having difficulty in finding a mortgage for your dream home? There’s almost a solution for every mortgage issue that new and potential homeowners face. Private Funding in the Mortgage industry is where one borrows from a lender other than the Bank Mortgages.
One can obtain financing from an individual or a group of investors. Another significant difference between conventional mortgages and Private Funding is, the property gets more attention from the lender than the borrower. In that, there is less scrutiny of the borrower as opposed to the Bank Mortgages.
You have the option of choosing from:
- First Mortgage: where you use the funds to purchase a property. In case you default, then this mortgage takes precedence over all other mortgages.
- Second Mortgage: it is a common use by many borrowers. It is used to supplement the homeowners financing from the bank. The Second Mortgage is a mortgage that you take on a property with Mortgage.
- Third Mortgage: When you already have the First and Second mortgage on your property, the other mortgage you would like to take is the Third Mortgage, and so on. It only exists if there is a low principal on mortgages and sufficient equity remaining on the property.
To learn more about Private Funds, contact our expert Mortgage Broker for your Mortgage needs.