We are happy to announce new private funding sources in Grand Cayman! As everyone knows, working with the banks can be a challenge. Our new private loans are equity based, up to 50% of the property value. Location will be key, and we are looking for loans of 250k USD and up.
Non-Qualifying Mortgages
Our loans do not rely on credit or income verification but rather equity (down payment). As long as you have 50% of the purchase amount available, no qualification is required outside of the property being approved. Ideally we are looking for condos on Seven Mile Beach or villas close to the water.
Because these mortgages do not go through the same difficult qualification process as a bank loan, our rates will be a bit higher. Falling in the 7.5 – 8.5% range with 2% in fees, the rates are still very competitive. This premium on the rates is a small price to pay for a quick and easy qualification process.
What is a Private Mortgage?
A private mortgage is funded by an investor, rather than a bank. The investor relies heavily on the marketability of the property, and the equity the borrower has in the property. Banks on the other hand, rely more on the borrower themselves and their credit and income history to approve deals.
Private mortgages come with a premium on the rate due to the added risk of not qualifying the borrower. In much of the Caribbean, private loans are as common as bank loans. The banks are hesitant to get back into the market due to poor marketability, unlike the Cayman Islands.
Investing in Private Mortgages in Grand Cayman
If you live in Grand Cayman and are looking to do a little better on your investment returns, our private mortgages are an ideal solution. Our mortgages are secured by the best real estate on the island. Due to the high equity threshold, they are also extremely safe.
Call or email us today to discuss your situation and let’s see if our private mortgage options in Grand Cayman may be right for you as a property buyer or as an investor!
