If you have a mortgage through a private lender you may be wondering if it is possible to refinance from a private mortgage into a traditional mortgage.
The answer: Yes, you can! Refinancing a private mortgage into a traditional mortgage is actually very similar to a standard traditional mortgage refinance.
In order to refinance your private mortgage into a traditional mortgage, you will need basic documentation – the same documentation you needed when originally applying for a mortgage. Additionally, you will need a Verification of Mortgage (VOM) from the mortgage holder, stating the details of the mortgage and your payment history. The deed and the tax bill for the property you are refinancing are also important documentation that will help the transaction move along smoothly, so be sure to have these on hand as well.
When refinancing a private mortgage, your credit scores will have to qualify, similarly to how they are required to qualify for approval for a traditional mortgage. Additionally, an appraisal of the property will have to be done to assure the value supports the loan.
Keep in mind that most people in private mortgages do qualify for traditional financing and may not know it. Also, keep in mind that having a mortgage on your credit report will greatly influence your credit score, and will positively influence your credit score if it is being paid on time.
If you have a private mortgage (owner financing, rent-to-own) and would like to find out if you qualify for a traditional mortgage, please contact us online or give us a call at 518-782-1202. We’d be happy to help you learn more about your refinancing options and can help you find out if you qualify for a traditional mortgage.