Private Mortgages and Alternative Lenders

Alternative lenders (often called 'B-lenders') are regulated but operate outside the big banks' standard underwriting — they're often more flexible on credit history, self-employment income, or debt ratios, in exchange for a higher rate than a traditional A-lender would offer.

Private lenders sit a step further out — often individuals or small lending companies, financing deals banks and B-lenders won't touch (poor credit, unconventional income, unique properties). Rates and fees are meaningfully higher still, terms are usually short (commonly one year), and the loan-to-value they'll lend at is typically lower, requiring more equity or down payment.

Both are commonly used as a bridge — a way to get financing now while you rebuild credit, stabilize income, or resolve a temporary issue, with the plan to refinance into a conventional A-lender mortgage once you qualify. Treating a private or alternative mortgage as a permanent long-term solution is usually the expensive way to do it.

A mortgage broker who works with these lenders (not every broker does) can meaningfully help here — the private/alternative lending market isn't as visible or standardized as bank rates, and broker relationships matter more in this space than in conventional lending.