While traditional bank mortgages are the most common, private mortgages serve as an alternative solution for those who may not qualify for conventional financing. Understanding the differences between these loan types can help borrowers make informed decisions about their home financing needs.
Private Mortgages: A Short-Term Financing Solution
Private mortgages, such as those offered by Lendworth Mortgage Investment Corporation (MIC), are typically short-term financing solutions designed to bridge financial gaps. Unlike traditional mortgages that often span 15 to 30 years with both principal and interest payments, private mortgages through Lendworth are structured differently to meet specific borrower needs.
Key Features of Private Mortgages with Lendworth:
- One-Year Terms: Our mortgages are structured for a one-year term, providing a temporary solution for borrowers in need of quick financing.
- Interest-Only Payments: Borrowers make interest-only payments throughout the term, preserving cash flow and allowing time to secure longer-term financing.
- Prepaid Interest Options: In some cases, prepaid interest options may be available, depending on Lendworth's review process.
- No Principal Payments During the Term: Unlike traditional mortgages, no principal is paid during the one-year term, making private mortgages ideal for those requiring immediate liquidity.
Who Benefits from Private Mortgages?
Private mortgages cater to borrowers who may not qualify for traditional financing due to strict bank requirements. Some common situations where private mortgages can be a viable option include:
- Borrowers Who Do Not Qualify for Bank Financing – Due to credit challenges, income verification issues, or non-traditional employment.
- Emergency Mortgages – When funds are needed quickly due to unforeseen financial challenges.
- Short-Term Solutions – Such as bridge financing while waiting for a traditional mortgage approval or property sale.
Understanding Mortgage Fees
Private mortgages generally include lender fees and broker fees that compensate for the flexibility and risk associated with these loans. While they may be more expensive than traditional mortgages, they serve a critical purpose in helping families and individuals secure financing when conventional lenders are not an option.
How Lendworth Can Help
At Lendworth, we specialize in providing private mortgage solutions with fast approvals and efficient funding. Our goal is to assist borrowers in securing financing quickly and effectively, offering a decision within 24 hours and funding within a week. Whether you're facing a financial emergency, need a short-term mortgage solution, or require an alternative to traditional lending, Lendworth is here to help.
If you're looking for a flexible, short-term mortgage solution, contact Lendworth today to explore your options!