Looking for a loan or a mortgage when you have a bad credit score or a bankruptcy in your name can be highly frustrating. With a record like that you should not be surprised if the big banks and financial institutions turn you away. Having insufficient income or an environmental issue surrounding the property you want to purchase can be equally bad news. Fortunately, you can get a private mortgage or alternative mortgage from individuals or private groups who are in it for a better return on their investment and do not care for your past records.

Since private mortgages are highly risky from the creditors’ point of view, they usually have a higher interest rate than bank loans do. The payment terms are also shorter and are typically of only 6 to 12 months, although you may be able to get an extension if you can provide a valid reason. Approval usually arrives on the same day and funding can happen in the same week. Even if there is a delay, the entire process should not take more than two weeks.

Private mortgage lenders like to limit their investment to their area of interest. Therefore, the only way you can access a private mortgage is through a mortgage broker who has access to the lender.