Reporting private loan when applying for a conventional mortgage

[Tyler Eastridge]

Good evening,

I currently own 1 investment property that is financed through a private loan with a promissory note.  There is another property that I am interested in and I am looking to use conventional financing.  My question is during the application process for a mortgage.  Do I need to disclose the private loan?  Thank you.

[Matt Devincenzo]

Yes any debts should be disclosed. Assuming it's not serviced through a third party service, you should be prepared to show that you've made all of your recent payments on time. You might do this by showing canceled checks or bank statements.