Not everyone fits the cookie-cutter model of perfection expected by the majority of lenders—in fact, many people don’t fit that model at all, in spite of being decent, hardworking and reliable.
Even if you do have great credit and you look like a good investment, if the home you want to build or buy doesn’t fit the cookie-cutter model of a “normal” investment, a lender may refuse to finance you.
If for whatever reason you are unable to procure a normal loan, you may want to look into hard money loans.
Read more: Hard Money LoansPurchase-Money Mortgage
A purchase-money mortgage is a useful alternative to traditional financing which can come in handy in some situations when a home is being sold.
With a purchase-money mortgage, the buyer of a home borrows some or all of the money to finance the transaction not from a bank, but from the seller of the home. The seller in turn gets to charge interest on the private mortgage anf the buyer will make payments on the home to the seller instead of to another lender.