A private mortgage is where the money lent is coming from a private individual, as opposed to a financial institution. They are typically approved based on the equity in your home, as well as it’s the location and salability, as opposed to your credit and income.  They are typically at a higher interest rate than you would find through a bank and will have additional fees associated with them as well. The fees are deducted from the mortgage proceeds, so in most cases, you won’t need to have any money up front, other than approximately $300 – $350 to pay for an appraisal.