Private Loans
Faster financing from a private lender, with different terms and different trade-offs.
A private loan is provided from an individual, a private investor or a non-bank lending company rather than a traditional bank or credit union.
Private loans are particularly common in real estate, where investors, homebuyers and homeowners use them to obtain financing more quickly, or under circumstances where traditional banks may not lend.
Private loan compared with a traditional loan
| Feature | Private loan | Traditional loan |
|---|---|---|
| Approval time | 7 to 14 days | 30 to 60 days |
| Interest rates | 10 to 15% | 6 to 8% |
| Interest only | Possible | No |
| Approval criteria | Equity | Credit scores, income and down payment |
| Time it takes to settle | 21 to 30 days | 30 to 90 days |
| Prepayment penalty | Possible and not typical | No |
| Duration of the loan | 1 to 3 years | 15 to 30 years |
Private loans in Virginia
Private loans can be particularly useful for real estate transactions involving inherited houses, investment properties, distressed properties, and homeowners needing short-term financing. Private lending is unregulated by the federal government.
Private loans for homeowners who need to sell quickly
A private loan might allow a homeowner to access money temporarily while preparing to sell. But it also adds interest, fees, and another debt against the property.
Any offers of private financing will be evaluated based on your unique needs, circumstances and resources.
There are other options to private loans
Contact Shep Saltzman
For a confidential conversation about your situation and all of your options.
Shep Saltzman — Principal Broker, Ashbrooke Realty, LLC
11870 Sunrise Valley Drive, Suite 100
Reston, VA 20191
Call or text (703) 448-1313
realshep@gmail.com