Can You Buy A House with An Alberta Private Mortgage?
Alberta Private Mortgage Can Help You Buy A House Even With Poor Credit
Banks generally require a credit score of 680 or above, in order to put a mortgage in place. This, of course, bars many from the mortgage from a bank or traditional lender. Although it is only one of the requirements for obtaining a mortgage, the does play a large factor when attempting to get a traditional mortgage.
It isn’t just poor credit that will keep an otherwise worthy buyer from purchasing a home. Many people such as contract workers or self-employed, for whatever reasons, do not disclose all their income or have not been in a contract or self-employed long enough (typically able to show 2 years of steady contract or self- employed earnings) to qualify for the traditional mortgage.
Of course, there are other factors that play a part in qualifying for a mortgage, and we will be discussing these in subsequent posts and suggesting alternative methods of working around them. For this post, we’ll focus on alternative financing to the traditional mortgage.
So what can someone with a good income, and a sufficient down payment do to purchase a home?
Buyers who can’t qualify for traditional mortgages from banks and regular lenders are buying homes daily with an Alberta Private Mortgage.
With Banks paying very low returns on investments, many investors have chosen to fund mortgages to good quality borrowers that cannot obtain a mortgage through a bank or by other traditional means. This is where the funding for Alberta Private Mortgages comes from, from
In this scenario, the credit score holds no importance. The only qualification needed by the buyer is a) a down payment of between 10% and 15%, and b) the ability to make the payments.
The interest rate might be slightly higher than what the traditional lenders are offering, but it in many cases it is the difference between buying your own home and continuing to make your landlords mortgage payment for him with your rent.
Typically, an Alberta Private Mortgage is only required for the a two year period which allows the buyer time to establish proof that they are conscientious and can and do make their mortgage payments on time, at which time, they can apply for a traditional mortgage from a bank or other lender and obtain a current rate.
For some, this is can expedite the process of buying a home.
So, the answer to this question is Yes, you can buy a house, even if you don’t qualify for a traditional mortgage by using the more lenient terms of an Alberta Private Mortgage
If you would like more information on an Alberta Private Mortgages and increase your ability to buy a home, call us today. We’d be happy to explain the entire process.