What Is a Private Mortgage and When Does It Make Sense?

If a big bank turns you down for a mortgage, you still have options. A private mortgage can be a helpful solution when your situation doesn’t fit the bank’s rules.

A private mortgage is a home loan from a private lender—this could be an individual, a group of investors, or a mortgage company. Instead of focusing only on your income or credit score, private lenders look mainly at your home’s value and the equity you have in it.

When a Private Mortgage Makes Sense

Private mortgages can be a smart choice when:

• You’re self-employed and can’t show steady income on paper.
• You need to buy or refinance quickly—for example, to stop a power of sale or grab an investment opportunity.
• You want to consolidate debt or rebuild credit after tough times.
• The bank says “no,” but you still have good equity in your property.

Why People Choose Private Mortgages

Private mortgages are usually short-term—often 1 to 3 years—and are designed to help you move forward until you qualify for a regular bank mortgage. They’re known for fast approvals, flexibility, and custom solutions that banks can’t offer.

While the interest rates may be higher, many homeowners use a private mortgage as a bridge loan to reach their next goal.

If you’re wondering whether a private mortgage could help you, talk to a licensed mortgage agent who works with both traditional and private lenders. The right plan can help you secure funding, protect your property, and create a path toward long-term stability.