What to Do If You Can’t Get a Mortgage for Your Pre-Sale Purchase
June 1, 2025 | Posted by: Alex Vinarski
Purchasing a pre-sale property is exciting, but what happens if you can’t secure traditional financing when it’s time to close? Don’t panic—you have options.
1. Private Mortgage as a Short-Term Solution
If banks decline your application, a private mortgage can bridge the gap:
✅ No income verification – Approval is based on your property’s equity, not your credit or income.
✅ Fast funding – Often approved and funded within days, not weeks.
✅ Open terms – Avoid penalties if you plan to sell or refinance quickly.
2. Use Existing Property Equity
If you already own a home or investment property, you can:
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Take out a HELOC (Home Equity Line of Credit) against it.
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Refinance to access cash for the pre-sale closing.
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Secure a second mortgage as a short-term solution.
3. Assign or Sell the Contract
Many pre-sale contracts allow assignment sales (selling your purchase agreement to another buyer before closing). This lets you:
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Recover your deposit.
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Avoid penalties for failing to close.
4. Negotiate with the Developer
Some builders may offer:
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Extensions (30–60 extra days to arrange financing).
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Partial refunds (depending on the contract terms).
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Alternate financing solutions (rare, but worth asking).
Need Help?
As a mortgage broker specializing in pre-sale financing challenges, I can help you explore private lending, equity solutions, or assignment strategies.
Contact me today to discuss your options before it’s too late!
