Private Lender Mortgages:
When & Why
Private lending is the fastest and most flexible mortgage option available — and the most expensive. Here's when it makes sense and when to avoid it.
A vs B vs Private: Full Comparison
Private lenders are individuals or Mortgage Investment Corporations (MICs) that lend their own capital. They operate outside bank regulation — which means faster approvals, less documentation, but significantly higher rates.
| Factor | A Lender (Bank) | B Lender (Alt) | Private Lender |
|---|---|---|---|
| Who they are | Banks, credit unions, monolines | Home Trust, Equitable Bank, etc. | Individuals, MICs, syndicates |
| Interest rates | Prime to prime +1% | Prime +1% to prime +3% | 8–15%+ (high risk premium) |
| Approval speed | 3–10 days | 3–10 days | 24–72 hours |
| Terms available | 1–10 years (fixed or variable) | 1–3 years typically | 6–24 months (short-term) |
| Qualification | Income + credit + property | Income + credit (flexible) | Equity-based (minimal income focus) |
| Best for | Standard situations | Credit challenges, self-employed | Emergency, last resort, bridge |
Private Lending is a Last Resort
At 8–15%, private lending is expensive. It's a tool for specific short-term situations — not a long-term strategy. Deane will always exhaust A and B lender options first. When private lending is the only path, he structures it with a clear exit plan to prime rates at the earliest opportunity.
When Private Lending Makes Sense
Bridge Financing
Closing on a new home before your current property sells. Private lending can bridge the gap for 30–90 days when bank timelines don't align.
Urgent Renewal (Credit Issues)
Your renewal date is in 30 days, your credit has issues, and you need a solution fast. Private lenders can approve and fund in 3–5 days.
Short-Term Cash-Out
Need $50,000 for a business opportunity or emergency and can't refinance mid-term without a huge penalty. Private second mortgage provides access, then pay down at renewal.
Construction / Renovation Holdback
Banks won't fund until construction is complete. Private lenders fund based on as-built value projections.
Explore Private Lending Options
If you've been declined elsewhere, Deane will assess if private lending is the right bridge — and plan your exit from it.
Schedule Your Free Consultation with Deane
Takes 2 minutes. Deane will respond within 24 hours with personalized options.
When Every Other Door Closes — Deane Finds Another One
Private lending, B lenders, and alternative solutions for complex situations.