Private mortgage/ rental property

[Kenny Szymanski]

Hey BP members, Question? If you take out a private mortgage against a rental property does that mortgage show up when you apply for a mortgage will a lender? I am in the middle of the mortgage process to buy a live in flip (170k purchase, arv 260k+) and i have the opportunity to get a Private mortgage for 60k @6% against a rental that's free and clear. Should I take the money or do I have to wait till i close? Thanks in advance for advice

[Kyle J.]

@Kenny Szymanski  A private loan usually wouldn't show up on your credit report.  However, when you apply for a new mortgage the lender will have you fill out a Schedule of Real Estate Owned form that basically asks about any properties you already own along with any lien holders on those properties, balances owed, monthly payment amounts, etc (see below for what one of these forms looks like).  You'd have to disclose the private mortgage loan on this form, so that's how they'd find out about it.