Although there are a number of banks still lending in the Cayman Islands, the process can be very slow and qualification can be more than a little painful. Private mortgage funds in Grand Cayman however are quick and easy to qualify for, with rates that are only a few points higher than bank rates. If you are in need of quick access to mortgage funds, or you don’t qualify at the bank for one reason or another, we have options!
How much Down Payment Do You Need?
Equity is key to qualifying for a private mortgage in Grand Cayman, the lenders want to make sure you have skin in the game so to speak. As a general rule, 50% down payment is required to qualify for a private loan. This may seem like a lot, however keep in mind that equity is really the only qualifying criteria unlike the banks, who consider income and credit as part of the process.
Some of our lenders may require income verification, however this does not mean that the deal needs to qualify by traditional lending standards (ie 40% of income). Our lenders just want to make sure you have the ability to make the payments and they are not going to be stuck with the property when payments start to fall behind.
Property Requirements for Private Financing
When it comes to private loans, the property is the most important factor that a lender will want to see. Properties must be highly marketable, meaning that they will sell quickly if the property were to fall into foreclosure. This means they will want properties in the tourism sector, which they know they can either rent or sell quickly.
Generally speaking, higher end properties are more desirable. We are generally able to offer loans as small as 200-250k in Grand Cayman, but lenders always have a preference for mortgages over 500k.
Benefits of a Private Mortgage in Grand Cayman
As discussed above, the key benefits to a private mortgage are quick and ease of qualification. But at the end of the day, why would someone want to pay more for this type of loan? Well, for many buyers, income verification (ie self employed) qualifying at the local banks can be difficult due to the amount of income they show on paper. It can be tough enough in the US or Canada to qualify, so this is a big hurdle in the Cayman Islands.
Secondly, making an offer on a new property with a 4 or 5 month closing date to accommodate the financing, is not an easy ask. Vendors may want to wait for a cash offer to avoid the delay, only to find out the client did not qualify. Private loans can be approved in weeks, with a closing within a month, tying up your dream property in a timely manner.
Talk to us today if you are looking for a private mortgage loan in Grand Cayman!
