Understand Why Private Financing Is Needed
We first identify what is preventing the request from fitting conventional or alternative lending and whether private financing is an appropriate bridge.
PRIVATE LENDING
Flexible financing when the situation does not fit a conventional box.
Private mortgages can provide short-term, property-focused financing when timing, income documentation, credit or the nature of the transaction makes conventional financing difficult. The strategy should always include a clear purpose and exit plan.
Review the Property & Equity
Private lenders often place significant emphasis on the property, available equity, loan-to-value and the overall strength of the security.
Compare the Full Cost
The interest rate is only one part of private financing. Lender fees, broker fees where applicable, legal costs, appraisal and the expected term should be considered together.
Build the Exit Strategy
Before arranging short-term financing, there should be a realistic plan for repayment—such as refinancing, sale, improved qualification or completion of a specific event.
PRIVATE FINANCING JOURNEY
Use private financing as a strategy, not simply a loan.
01Financing Need
02Property & Equity
03Private Options
04Costs & Terms
05Exit Strategy
06Funding
WHEN IT MAY BE CONSIDERED
Private lending can solve specific short-term financing problems.
Time-Sensitive Financing
When a transaction needs to close quickly and a conventional lender cannot complete the financing within the required timeline.
Income or Credit Challenges
Where the borrower has sufficient property strength or equity but does not currently meet standard income or credit guidelines.
Bridge to a Better Solution
Short-term financing may provide time to improve qualification, complete documentation or transition to longer-term institutional financing.
Unique Property or Transaction
Properties, renovations, construction stages or other situations outside typical institutional lending guidelines may require a more flexible approach.
WHAT WE REVIEW
The property matters—but so does the plan.
Private lender requirements vary. A strong submission clearly explains the property, requested loan, borrower circumstances and how the mortgage will ultimately be repaid.
Review your private financing scenario →Property & ValueProperty details, current value or appraisal, existing mortgages and the proposed security.
Requested FinancingLoan amount, purpose of funds, required closing date and expected financing term.
Available EquityExisting property equity and the resulting loan-to-value are often central to private lender analysis.
Borrower ProfileIncome, credit and financial circumstances remain relevant even when underwriting is more property-focused.
Costs & TermsInterest, lender fees, brokerage fees where applicable, legal costs and other transaction expenses should be reviewed before proceeding.
Exit StrategyA credible path to repay, refinance or sell before the private mortgage reaches maturity.
KNOW THE TRADE-OFFS
Flexibility comes with different costs and conditions.
Higher Cost
Private financing commonly carries higher rates and fees than conventional mortgage financing because of its short-term and higher-risk nature.
Shorter Terms
Private mortgages are often designed as temporary financing, making the maturity date and next financing step especially important.
Property Focus
Location, marketability, property condition and available equity can have a significant impact on lender interest and terms.
Exit Risk
If the planned refinance or sale cannot be completed as expected, the borrower may face additional costs or need another financing solution.
PRIVATE MORTGAGE REVIEW
Before choosing private financing, compare the path in and the path out.
Orbit can review the reason for the financing, available equity, expected costs and exit strategy, and determine which lending channels may be appropriate to explore before a commitment is made.
Rates, fees, terms and approval requirements vary by private lender and transaction.
Need a financing option outside the conventional box?
Tell us about the property, timing and what you need the financing to accomplish.