Private Money Mortgages

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Definition

Flexible Financing Beyond Traditional Limits

A private money home loan is a real estate loan funded by private individuals or non-institutional investors rather than traditional banks or government-backed lenders. These loans are asset-based, meaning approval is driven primarily by the value of the property rather than the borrower’s credit profile.

Description

Trusted Partnerships Built

Private money home loans are commonly used for short-term financing needs, such as real estate investments, property flips, bridge financing, or situations where speed and flexibility are critical. Because private lenders are not bound by conventional or government underwriting standards, loan terms can be customized to fit unique or time-sensitive scenarios.

Approval Criteria

Primarily based on property value, equity, and exit strategy rather than income documentation or credit scores.
Speed

Faster approval and funding timelines compared to traditional mortgage loans.
Loan Terms

Typically short-term (6–36 months) with interest-only payments common.
Interest Rates

Higher than traditional loans due to increased risk and flexibility.
Down Payment / Equity

Requires significant equity or a larger down payment.
Property Types

Often used for investment properties, distressed properties, or non-owner-occupied homes.
Flexibility

Fewer restrictions on borrower credit history, income verification, or property condition.
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