Most traditional mortgages are borrowed from banks and other financial institutions, but did you know that private mortgage financing also exists? Individuals, e.g. investors or sellers, may have a private mortgage and this has many advantages for both the sellers and the buyers as well as any third party investors.
For buyers, it is the perfect option when traditional mortgage loans are unavailable and poor credit history is the cause. If you are a buyer with poor credit, private mortgages allow you to rebuild your credit history, gather equity and get a positive repayment record. In a lot of cases, those with a private mortgage can refinance their property further down the line and get a traditional mortgage loan with lower rates once credit history has been improved through the private mortgage.