• Home
  • About
    • Fair Lending
    • Events
    • Privacy Security
  • Careers
  • Blog
    • Press Releases
  • Contact
  • My Guild Account Login
  • Borrower Portal
  • Loan Servicing
    • Make a payment, find 1098 & see all loan activity
800-965-9910

Cornerstone Mortgage

Cornerstone Mortgage

  • Apply Now
  • Find A Branch / Loan Officer
  • Find A Home
  • Mortgage Resources
    • Calculators
    • Imperfect Credit?
    • Loss Draft Information
    • Mortgage Terms
    • What is RatePlug?

What Is A Private Lender?

March 1, 2018 by jWeb Media

When you shop around for the best home loan for your financial needs, you will likely come across what is known as a private lender, as opposed to a government or conventional lender. But is a private lender right for you and what is it anyway?

What Is A Private Lender?

A private lender is not like a conventional lender in that they don’t sell your loan in the secondary market and are typically used when the property you are trying to buy cannot be financed any other way or a conventional or government lender is not willing to take the risk of lending to you. A private lender can be an individual or a company (not a bank) that loans money to fund a real estate transaction. These can be friends, family, coworkers, associates or accredited investors.

Private Lenders Are Easier To Qualify For

Because private lenders can be friends or family, these loans are easier to qualify for. This is especially good for buyers with poor credit or otherwise not qualified for a government loan. However, it is essential to be on the lookout for predatory lending schemes if you choose to go with a private lender and read and understand all documents before signing them.

Private Lenders Have A Shorter Payback Period

If you choose to go with a private lender, realize that unlike conventional and government lenders the period in which to pay back the loan will be much shorter since these lenders are looking for a quick return on their investment. As such, private lenders are not advised for buyers who are looking for a first time home or a home in which they will be living for a significant amount of time. However, if you are “flipping” the house (buying it to fix it up and sell it at a higher price) a private lender may be a better option than a government loan.

Thoroughly Research Your Options

Like with all large financial decisions, it is imperative that you do you research and consult with a trusted advisor as to what lender options are best for your unique situation.

Ready For A Change? We’re Always Looking For Talent!

Apply Today

Filed Under: Blog, Mortgages & Home Loans Tagged With: predatory lending, private lender, secondary mortgage market

The information provided on these posts have been prepared by a third party company and have been distributed for education purposes only. The positions, strategies or opinions of the authors do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax adviser for full eligibility requirements on tax deduction.

member forbes verfied scotsmanlogo ehl bbb  
 

Our Company

> About Us

> Contact

> Privacy Security

> Careers

> Blog

 

Our Services

> Home

> Apply

> Find a Branch / Loan Officer

> Mortgage Resources

> Your Account

 

Compliance

>Licenses

>Disclosures

>Privacy Security

>Consumer NMLS

cornerstone-logo

© 2019 · Cornerstone Mortage, Inc · Sitemap ·
Guild Mortgage Company is an Equal Housing Lender; AZ BK #0018883; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act; Georgia Residential Mortgage Licensee; GA #6268; Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; NV Banker #1076 / NV Broker #1141; OR ML-176; Rhode Island Licensed Lender; State of Missouri Principal Location: 17280 North Outer 40, Ste. 101, Chesterfield, MO 63005; Company NMLS ID 3274. http://www.nmlsconsumeraccess.org/ All loans subject to underwriter approval. Terms and conditions apply. Guild Mortgage Company is an Equal Opportunity Employer. Guild Mortgage Company 5898 Copley Drive San Diego, CA 92111; For more licensing information, please visit https://www.guildmortgage.com/licensingBrought to you by Jweb Media.

MENU
  • Home
  • About
    • Events
    • Privacy Security
  • Apply
  • Blog
  • Careers
  • Contact Us
  • Mortgage Resources
    • Kansas City Mortgage
    • What is RatePlug?
    • Imperfect Credit?
    • Mortgage Terms
    • Calculators
    • St. Louis Home Loans
    • St. Louis Mortgage Rates
  • Find A Loan Officer
  • Press Releases
  • Find A Home
  • Privacy Security
    • Privacy FAQ’s
  • Your Account