If you are planning to substantially renovate or build a new home and have been rejected by the bank for financing, then Private Mortgage Lending may provide you the solution you require. Private Mortgage Lending is a mortgage contract where the lender is not a Bank, but rather an individual or a business. If you have spoken to the Bank about Construction Financing Loans then you are aware that they have strict regulations regarding lending money
Unfortunately, the lending requirements for many people are too difficult to meet, and many people are denied the Construction Financing Loans they require. This is where Private Mortgage Lending comes in.
One of the main advantages of Private Mortgage Lending is its availability and flexibility. If you have been denied a Construction Financing Loan due to a poor credit rating, bankruptcy, lack of earnings or equity, Private Mortgage Lending is still a viable option for you. Please note the interest rates that come with this Private Mortgage Lending option are however higher than conventional mortgages and loans.
Additional benefits of Private Mortgage Lending are that the rules pertaining to how you can use the mortgage amount are less restrictive as compared to the terms and conditions of a Bank.