Private Money Mortgage Lending (also called private lending or hard money lending) is when an individual or non-bank entity lends money secured by real estate. Instead of borrowing from a traditional lender like a bank or credit union, the borrower gets the loan from a private investor, lending company, or fund.
Private money mortgage lending is asset-based lending, meaning the loan approval depends heavily on the value of the property used as collateral—not just the borrower’s credit or income.
These loans are typically:
Private lenders can be:
Borrowers often include:
