When it comes to finding a mortgage when you have bad credit, it can seem impossible. If you’re only considering traditional lenders, that’s more than likely the case. Banks don’t like risk, and bad, slow or poor credit can be seen as an indication that you’re a risky proposition. Does that mean you’re completely out of options? Not at all. Private mortgage lenders for bad credit borrowers can help you get the loan you need.
Private mortgage lenders are very different from banks. They take many forms, as well, from nontraditional financial institutions to networks of individuals that specialize in high risk lending. Of course, there are a few things that you’ll need to know first. One of those is that private mortgages generally come with a higher interest rate. That’s due to the increased risk that the lender is taking by offering the loan to borrowers with bad credit.
Another thing to know here is that many of these types of loans are designed to be paid off very quickly, within a year or two at the most. This allows you to rebuild your credit and then find more affordable financing. So, private mortgage lenders for bad credit borrowers can be important tools to ensure you’re able to get into the home you want, but they must be used carefully.
At Mortgage Captain, we have decades of experience working with both traditional lenders and private mortgage lenders. We can help guide you through the process while avoiding the potential pitfalls. Once your private mortgage is paid off, we can even help you find your next loan. Call us today at 844-254-4376 to learn more about private lending and how it can benefit you.