When should a homeowner consider a private lender when searching for a mortgage?
Lenders come in a lot of different packages. The private lender is a good choice for situations where the borrower is unable to qualify for a traditional mortgage due to not-so-good credit, self-employment, or other issues. People in the business of house flipping frequently use a private lender because there is a very short period to complete the approval process and to close the deal. There could also be a situation where a family member or close friend is interested in lending money for a real estate purchase as an investment. The lender knows and understands the borrower’s situation and is willing to trust in the results.