If you have a bad credit score, bankruptcy, insufficient income, or environmental or zoning issues, you might think that getting a loan is impossible. However, there is a solution – private mortgages. Bad credit loans in the form of private mortgages are funded by individuals or groups who are looking for better returns on their investments than the 2% offered by a GIC at their bank. These groups are commonly known as Mortgage Investment Corporations (MICs). They are comfortable with investments that are secured by real estate and they will look past bad credit and other issues that traditional lenders might reject.
Private mortgage investors are interested in people and properties, not just reports and numbers. They will actually listen to your story and make a decision based on all of the information. They will look at bank statements, recent appraisals, employment letters, and whatever you can provide to show that you and your property are good investments.
Guidelines and facts:
- Rates: Private mortgage lenders typically offer higher rates than bank-posted rates, although not always.
- Term: The term of a private mortgage is typically 6 to 12 months, but longer terms may be possible if there is a valid reason.
- Payments: Payments are usually interest-only, but amortized payments are also possible.
- Fees: Fees depend on the overall deal and can range from 1 to 3%.
- Region: Private mortgage lenders typically invest in their own area(s).
- Approvals: Approvals can take from an hour to a day.
- Funding: Funding can happen in less than a week, but generally takes 2 weeks.
Bad Credit Lending in Mississauga, ON
Bad credit loans/private mortgage investors in Mississauga, ON will even look at farm mortgages, mobile home mortgages, a cottage or vacation property, land, and a small variety of commercial properties. Every private mortgage investor is different and that’s why you need a mortgage broker. A mortgage broker has access to private funds and can connect you with private lenders who are a good fit for your unique situation.
If you’re looking for bad credit loans, dealing with a Mississauga, ON mortgage broker who has access to private funds is your best bet. At Lotus Loans and Mortgages, we have access to private funds and can help you secure a private mortgage that fits your needs. Don’t let bad credit or other issues prevent you from getting the financing you need – contact us today to learn more about private mortgages.