A private mortgage is a type of mortgage loan that is provided by an individual, group of investors, or corporation instead of traditional lenders like banks and credit unions. Private lenders can be an option if you are unable to qualify for a mortgage through more conventional lenders. Private mortgages have a different set of criteria and rules from the types of mortgages that you would get from a bank and can be a great option for those who are self-employed or have an irregular income, a bad credit score, or have a non-traditional property.