Private Lender?

Some sellers offer "seller financing". You would pay your payments directly to them instead of a financial institution; this can be helpful for people who would not normally qualify, but it has it's drawbacks. Often there is a balloon payment after a few years, so you would have to be able to get standard financing at a later date. Also, many times your mortgage payments are not reported to credit agencies so you lose the benefit of building your credit. In addition to seller financing there are "hard money" lenders. These are equity based lenders and usually charge higher rates and require larger down payments or lower loan to values to obtain. Try the standard financing before you opt for either of these, FHA can be forgiving and might be a viable option. Speak to a loan officer in your area, start your search here on Lender 411 by clicking "find a lender" above.

Yes the do exist.Advantages: They will do loans that conventional lenders will not do.Disadvantages: Usually come with much higher interest rates.

If you qualify for a conventional mortgage, there would be no advantages to going with a private or "hard money" lender. We are Direct Lenders, FREEDOM MORTGAGE, and can make your home buying process an easy one. Rates are at records lows and, with FHA, only a 3.5% downnpayment is needed. I would love to send you a FREE mortgage quote. Please email me with your contact details. www.Mortgage-FHA-Rates.com.

The advantage is hardly any documentation is required and usually the loan funds fast. The disadvantage is rates and fees are considerably higher due to the assumed higher risk.This is usually referred to as hard money. Like many others that offer hard money loans, we recently changed our criteria. No more owner-occupied loans. Government regulations have basically made it prohibitive, compared to other forms of ownership. .... Happy funding, Rudi