Your credit score might not be in great shape, and let’s face it, it is not easy to fix and it can take years to come back from a tough period on your credit. This may prove to be a huge obstacle to overcome when working with a traditional bank.
When working with a private lender, credit score and history may not matter as much since private lenders can secure collateral in other ways. Private lenders are a lot more flexible when it comes to choosing their beneficiaries and for that reason, they are known to take more risk. Regardless of your credit score, a private lender may give you a better chance at a mortgage loan.