Mortgage How Much Can I Borrow | Borrow Money for a Mortgage from a Private Lender

Borrow Money for a Mortgage from a Private Lender

Private lenders are becoming new sources for house buyers who are having a hard time getting approved for a mortgage.  Private Lenders vary from small banks to your next door neighbor to a family member.  Private lending almost always comes at a price which is normally a higher interest rate and more equity in the house.  So the real questions is why and when would you want to consider a private lender?  We will discuss different scenarios to help you answer the question of  how much can I borrow for a mortgage from a private lender.

Flipping Houses and Borrowing Money for a Mortgage

Many people believe that flipping houses are a thing of the past but the truth is people are still in the flipping houses business. With foreclosures skyrocketing people are out there trying to flip houses and in some cases making huge profits.  How are they getting approved for these mortgages.  They are getting approved by going to private lenders and offering up a lot but intern getting a lot back.  I have heard mortgages in the 11% range for people flipping houses and borrowing money from private lenders.  Crazy some might say or brilliant others might think.  I guess the real question is it depends how good you are at selling the houses and how fast.  A mortgage with an 11% interest rate is not so bad if you can buy a house and have it sold withing 30-60 days while making a nice $30,000-$40,000 profit.  trust me when I tell you that it is being done and being done daily.  This housing market is prime for these type of loans.  The private lender is happy and so is the person flipping the house.  It becomes a win / win scenario for both the private lender and the borrower. So when you ask the question how much money can I borrow for a mortgage one of the real answers is how good are you in finding a good house at a below market price.

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