Private mortgage questions

A mortgage funded by a private individual, corporation, mortgage investment corporation, or non-bank lender. Private lending is usually more flexible but typically costs more than conventional lending.

Usually, yes. Rates and fees are commonly higher because the lender is taking more risk, using more flexible criteria, or funding faster than conventional lenders.

Not necessarily. Credit is reviewed, but property value, equity, mortgage position, and exit strategy can be more important in private lending.

Timing depends on appraisal, lender review, title/legal work, payout statements, insurance, and documentation. Urgent files can sometimes move quickly, but speed cannot be guaranteed.

The plan to repay or move out of the private mortgage, such as sale, refinance, bank approval after debts are paid, tax filings completed, credit improved, or construction completed.

Sometimes, if there is enough equity, the timeline still allows completion, and legal/lender conditions can be satisfied. Legal advice may be required.