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5 Scenarios When A Private Money Lender Is Your Best Financing Option

private money lender

Why Private Money Lenders Can Be Your Best Source Of Financing

What’s the buzz with private money lenders you might wonder?

Let us feed your curiosity.

There are many occasions in one’s life when the need of financing can turn into a consuming struggle. Getting a loan used to be a less complicated procedure, but can now be a frustrating experience. 

As we all know, having your loan approved by a bank is not the easiest process. Your application can get rejected for a multitude of various reasons, sometimes after wasting several months.

You might even find yourself in a position which disqualifies you altogether from trying to apply for a bank credit. Maybe you are currently unemployed, or maybe you have a very low credit score. 

In light of recent economic troubles across Canada, most of the “big banks” have imposed very strict lending requirements which ask for an almost perfect credit and a stable source of income. If you don’t fit into these categories, most probably your loan application will be turned down.

What can you do if you’re in this situation? Is there any hope left? 

Will you still be able to get the loan you need?

Absolutely. And we’ll tell you how.

Even in a down market like the one we are currently experiencing, having home equity can offer you a great alternative mortgage financing option. When we say home equity, what we mean is the part of a property which you actually own. You could be the sole homeowner of your house or you might have property co-ownership. In any of these cases, if you are in need of money but you don’t qualify with the banks, or you need cash fast and the process takes too long, working with a private money lender could be your best solution. 

We wrote this post to present you the best 5 scenarios when working with a private money lender could benefit you the most.

But first…

What Are Private Money Lenders?

Private money lenders are non-institutional lenders who provide fast loans for anyone possessing a collateral and looking for quick funding. These types of lenders can be either private companies or individuals that have sufficient funds to lend. Private lenders (or a non-bank lender) don’t have the same strict governmental regulations as banks, making them the best solution for people that have been turned down by A-lenders and are looking for an alternative.

As one of the most trusted mortgage brokers in Vancouver, what we are specialized in, are efficient private lender mortgage solutions. 

Whether you want to renovate your home, consolidate debt, buy a second home before selling your first one or you simply wish to go on a vacation and you don’t have enough money for it, our alternative mortgage financing options can solve any of your needs in no time and without a hassle.

And the best part is that whatever reason you might need your mortgage for, you can use your loan as you wish, with no strings attached.

How Do Private Money Lenders Work

a toy home and a piggy bank for alternative mortgage financing options

Wondering how our private money lenders work and what makes them such a great alternative to banks?

In the case of private mortgage lenders you will use your ownership in a property as collateral. This type of lender is not concerned by your bad credit, your low income or even the complete lack of it. Their main priority is the value of your property. Since the amount you can lend depends entirely on your home’s market value, our selected private mortgage lenders in BC can offer you up to 75%, and in some cases even 80% from the value of your home in major cities. 

Unlike banks, other aspects that private money lenders might take into account when considering your mortgage are:

  1. The size and location of your property
  2. Improvements you can bring to raw land
  3. Current condition of property
  4. Additional homes or outbuildings on property
  5. Native leased land or the ownership of a mobile home. 

And if you worry about how to find private lenders that are trustworthy and how to make sure you chose the right one for you, worry no more!

When working with us, you will have access to all the top alternative mortgage lenders in British Columbia Canada. We will help you save effort and time by shopping around the mortgage market on your behalf, while focusing on your particular situation. 

get your free assessment today from a private money lender

Since no two loans are the same, we will offer you a product which is tailored on your unique case and requirements. By having well-established connections with all our private money lenders, we can help you score the most competitive mortgage terms and rates on the market.

Let’s get back to our top 5 scenarios where working with a private lender for a mortgage will turn out to be the best choice for your financing.

1) Your Credit Score Is Not Perfect 

We already know by now that getting a mortgage loan through a traditional A-lender is not easy. 

As for getting a mortgage with bad credit… well, that can be really tough!

When applying for a bank loan make sure to expect your credit reference file to be thoroughly scrutinized for any history of not paying your bills in time. The slightest sign of past failures in keeping up with your rate payments will lead to your file getting rejected in no time.

And as if a history of bad payment was not enough, even your college years can be hunting you down now. Owing too much on your credit card or an unpaid student loan are equally powerful enough in getting you turned down from a mortgage loan.

The good news is that our private money lenders don’t see bad credit as a barrier.

In fact, it could be one of the least important things for them.

Private mortgage lenders are open to approving home and real estate mortgage loans even for those having an irregular income or a lifeless credit score, making them the best alternative mortgage financing option for all those who own title in a property but got rejected by the high-street banks.

Couple looking for an alternative mortgage financing option from private money lender

2) You Need Cash, Now

If you find yourself in a tough spot and in need of some fast cash, your home equity can be your biggest ally. 

Qualifying with our private money lenders is easy. You just need to have proof of the amount of equity you have invested in your property. The more equity you have, the better deal you will get. And the best part… you don’t even need to justify what you need the money for. 

You can use it to consolidate debt, make some home renovations, or just pay your son’s hockey lessons.

You could be also caught in between buying a new house before selling the old one. We all know that especially in property selling “Cash is King”. Being able to pay cash will surely give you an edge with any seller looking to seal the deal fast. As the mortgage process with banks can be time consuming, a buyer who plans to pay cash is likely to be taken more seriously.

3) Fast Funding 

Getting your financing secured in a timely manner is of great importance. Especially if you are an investor, you know that many times a real estate deal will depend entirely on how fast you can fund it.

Private mortgage lenders are the easiest lenders to qualify for and when working with us, we can get your application approved in less than 24 hours!

Funding will take between 2 to 10 business days, depending on the availability of appraisers and lawyers.

This is one of the greatest benefits when working with our private money lenders. 

We are fast, and we don’t like to waste your time — unlike regular banks which might take a month or more to approve your loan, if at all.

4) You’re Looking For An Easy Funding Process

Banks usually require a ridiculous amount of paperwork and documentation before issuing a loan. All these take a lot of time and you will have to do all the work by yourself. 

We know quite well just how stressful and consuming this process can be. That’s why we promise not to waste your time and patience.

Private money lenders don’t care about investigating all your finances as their only interest is your collateral. We will handle all the paperwork for you, and we will present you with the best alternative mortgage financing option on the market. 

5) You Want Flexibility and Alternatives

Working with banks could be less expensive than private money lenders but dealing with them will be harder. Banks are under strict state and federal regulations which make them inflexible and rigid. 

Private mortgage lenders don’t have to obey the same regulations as A-lenders and their business is not dictated by set limitations regarding who they can borrow to and how their client’s profile should look like. 

Unlike the banks, private lenders can customize each mortgage based on your situations and their own criterias. 

When looking for an alternative mortgage financing option, there are aspects that a bank wouldn’t consider but a private lender would.

The size of your property, the value of the acreage, improvement added to raw land, current condition of property, additional homes or outbuildings on property or owning a mobile house can all be taken into account when private mortgage lenders will calculate your loan. 

To find out more about your financing options and what our private money lenders can do for you, get in touch for a free assessment. We would be more than happy to answer all your questions! We are just a phone call, online application or email away.

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