is short-term, interest-only loan, ranging in length from 1 to 3 years

Private mortgages are short- term, interest-only loans, ranging in length from 1 to 3 years. Interest only loans do not require homeowners to pay the mortgage principal down, and instead only require interest payments each month.

Private lenders have realized that conservative lending guidelines used by banks and conventional lenders exclude many individuals who are in fact able to pay back loans. Most importantly, private lenders take into account a property’s overall value and marketability as opposed to simply the borrower’s credit history.

Private Mortgage

Why would I use a Private Mortgage Lender?

You would use a private mortgage under any of the following circumstances:

Types of Private Mortgage Lenders

Characteristics of a Private Mortgage

Private Mortgage Lenders Specialize

Private Lenders will often become an expert in a certain lending category. Some examples include:

What Criteria Will Private Lenders Look At?

More so than prime or conventional lenders, private lenders have tighter guidelines on other factors to compensate for the added risk.


The principal difference between prime lenders and private mortgage lenders is that private lenders consider unique properties based on a borrower’s ability to pay back a loan, not just on credit history. Every client is evaluated on an individual basis taking into account the points mentioned above.