Bank vs. Private Lender: Which Is Right for Your Deal?
Compare cost, speed, leverage and flexibility to decide between a bank loan and private capital.
By the CFUND advisory team · 5 min read
Side by side
- Cost — Banks: lowest rates and fees. Private: higher rates and points
- Speed — Banks: 45–90 days. Private: often 1–3 weeks
- Focus — Banks: borrower income and financials. Private: property value and exit plan
- Flexibility — Banks: strict guidelines. Private: deal-by-deal
- Term — Banks: 5–25 years. Private: 6–36 months typical
A common path: private first, bank later
Many investors use a private bridge or rehab loan to buy and improve a property, then refinance into a bank or DSCR loan once it's stabilized. Planning that exit on day one makes both loans easier to get.