Private Mortgage- How To Do It Actually

Private mortgage and loans

-you borrow from another person or business. Whether it’s your only option, or one of many, it's worth learning how these loans work and knowing what can go wrong.

As you evaluate where and how to borrow (or lend, if you're the person with cash), keep the big picture in mind: typically the goal is to create a win-win solution where everybody gains financially without taking too much risk.

This page focuses on mortgage loans with people you know. If you're looking to borrow from private lenders (that you don't know personally), read about hard money loans. Hard money lenders are useful for investors and others who have a hard time getting approved. They are often more expensive than other mortgages and require low LTV ratios.

Why go Private?

The world is full of lenders. So why not just call a 1-800 number and borrow money from the bank?

Qualifying: for starters, you might not be able to qualify for a loan from a traditional lender.