Private Mortgage Loans

Private mortgages in the Caribbean are a great alternative to bank financing. Most of the private financing we do, is through private investors (individuals who are sitting on money looking for a better return on their investment). We also offer private mortgages through Caribbean based mortgage funds, which are loans funded through a pool of investors.

Private mortgages generally come with higher interest rates than the bank, and the fees to source these mortgages can be higher than those charged by the bank. Due to the lack of options available in the market however, most buyers do not mind the extra costs. This situation is really a win-win for both sides of the transaction.

How to Qualify for a Private Home Loan

Unlike traditional bank loans, private mortgage loans are generally equity based. This means the lender is only concerned with the amount of equity in the home, and not in the clients income and credit. If the loan goes into default, the lender just wants to know that their investment is safe after all the legal and real estate costs to sell the property are covered.

Here are just a few differences you can expect between a non resident bank mortgage and a private mortgage:

• bank mortgages will usually qualify you with less down payment (30% minimum)
• private mortgages will
• often have longer or no amortizations (interest only)
• private home loans in the Caribbean will have interest rates that are several points higher than banks
• qualification will be much easier on a private mortgage
• timing is key when you need a private lender; there has to be someone available who is wanting to lend
• private lenders (individuals) are often not as flexible on their terms; they may need their money at a specific time down the road limiting how long they can lend you the money
• loans through mortgage funds, may be more flexible than the banks

We currently offer private mortgages in all of our primary and secondary markets, but our minimum loan size means we may only have jumbo options in some locations. We offer loans on land, construction financing, and resort type properties.

Non Bank Mortgage Rates

Pricing on our non bank loans vary by region. On some islands, our loans are only two or three percent higher than the banks. On other islands however, where there is less competition, the rates may be significantly more (4-6% higher). It really comes down to location and loan type when you are comparing interest rates.

As for points charged on the loan, again, this varies by island. We have some islands as low as 1-2%, while others will see rates as high as 4-5%. The fees are also dependent on loan size, the smaller the loan, the more fees that are usually payable.

Property Types We Can Finance

Primarily we are interested in financing tourist based residential properties. Income producing villas or condos on or close to the water are the most desirable deals for our investors.

We can also finance small resorts and multi-family properties. Existing hotels or condo-tels in highly marketable areas are attractive to investors, but they still require similar equity (usually 50%) as our residential products.

Commercial loans are hit and miss, depending on the type of commercial. A rented store front would have much more appeal than a restaurant where the success of the business is tied to the quality of the owner.

Talk to us today about all of our private mortgage options in the Caribbean!