Private Mortgage Lenders 2026: Compare Rates & Qualifications
Can't qualify for a conventional loan? Private mortgage lenders offer flexible underwriting, faster closing (5-21 days), and rates from 6.50% to 12% depending on lender type. We ranked 10 private lenders by rates, LTV, speed, and credit requirements.
3 Types of Private Mortgage Lenders
Hard Money Lenders
Short-term loans (6-24 months) for fix-and-flip or bridge financing. Asset-based — property value matters more than income.
- • Rates: 8-12%
- • LTV: 65-75%
- • Points: 2-4
- • Close: 5-14 days
- • Credit: 580-620+
Non-QM / DSCR Lenders
Long-term (30-year) loans with flexible income verification. Use bank statements or rental income (DSCR) instead of W-2s.
- • Rates: 6.75-9%
- • LTV: 75-80%
- • Points: 0-2
- • Close: 10-21 days
- • Credit: 620-660+
Portfolio / Private Bank
Community banks and credit unions that keep loans in-house. Longer terms, lower rates, but stricter credit requirements.
- • Rates: 6.50-8%
- • LTV: 70-80%
- • Points: 0-1
- • Close: 21-30 days
- • Credit: 660+
Top 10 Private Mortgage Lenders Compared
| # | Lender | Type | Rate Range | Max LTV | Close Time | Min Credit | Best For |
|---|---|---|---|---|---|---|---|
| 1 | Kiavi | Non-QM / DSCR | 7.50-8.50% | 80% | 10-14 days | 640+ | Best for investors — DSCR loans nationwide |
| 2 | Lima One Capital | Hard money / Fix-flip | 8.00-11.00% | 75% | 7-10 days | 620+ | Best for fix-and-flip investors |
| 3 | Visio Lending | Non-QM / DSCR | 7.75-8.75% | 80% | 10-15 days | 660+ | Best for rental property investors |
| 4 | Groundfloor | Hard money | 8.50-12.00% | 70% | 7-14 days | 600+ | Best for short-term flips (6-12 months) |
| 5 | RCN Capital | Hard money / Bridge | 8.00-11.50% | 75% | 5-10 days | 600+ | Fastest closing — 5 days for bridge loans |
| 6 | CoreVest Finance | Portfolio / DSCR | 7.25-8.50% | 75% | 14-21 days | 660+ | Best for portfolio landlords (5+ properties) |
| 7 | Finance of America Commercial | Non-QM / DSCR | 7.50-9.00% | 75% | 14-21 days | 640+ | Best for mixed-use and multi-family |
| 8 | LendingOne | Non-QM / DSCR | 7.75-9.25% | 75% | 10-17 days | 660+ | Best for first-time investors |
| 9 | Baker Capital | Hard money | 9.00-12.00% | 70% | 5-7 days | 580+ | Best for poor credit (580+ accepted) |
| 10 | Local Community Banks | Portfolio | 6.50-8.00% | 70-80% | 21-30 days | 660+ | Lowest rates — keep loans in-house |
Rates as of August 3, 2026. Actual rates vary by property type, LTV, credit score, and market conditions.
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Get My Private Lender Quotes →When to Use a Private Mortgage Lender
Self-employed with complex income
Non-QM lenders use bank statements (12-24 months) instead of tax returns. DSCR loans use rental income only.
Fix-and-flip investor
Hard money lenders fund in 5-10 days, interest-only payments, no prepayment penalty. Perfect for short-term projects.
Credit score below 620
Hard money lenders accept 580+ credit. Non-QM lenders accept 620+. Conventional requires 620+ with strict DTI limits.
Need to close fast (under 14 days)
Hard money and bridge lenders can close in 5-7 days. Conventional loans take 21-30+ days.
You qualify for conventional (620+ credit, W-2 income)
Conventional rates (6.09-6.66%) are 1-5% lower than private lender rates. Always try conventional first.
Primary residence, long-term hold
Hard money loans are short-term (6-24 months) with high rates. Not suitable for a home you plan to live in for 10+ years.
Private vs Conventional: Cost Comparison
| Loan Type | Rate | Monthly Payment* | 30-Year Cost | vs Conventional |
|---|---|---|---|---|
| Conventional (620+ credit) | 6.09% | $2,423 | $872,280 | Baseline |
| Non-QM (bank statement) | 7.50% | $2,800 | $1,008,000 | +$135,720 |
| DSCR (investor) | 7.75% | $2,866 | $1,031,760 | +$159,480 |
| Portfolio (community bank) | 6.50% | $2,528 | $910,080 | +$37,800 |
| Hard money (12-month) | 10.00% | $3,510** | $42,120/yr | Interest-only |
*$400K loan, 30-year amortization, 20% down. **Hard money is interest-only, 12-month term. Rates as of Aug 3, 2026.
How to Qualify for a Private Mortgage
1. Determine Your Loan Type
Investment property? DSCR or hard money. Self-employed primary residence? Non-QM bank statement. Fix-and-flip? Hard money. Good credit but non-standard property? Portfolio lender.
2. Prepare Your Documentation
DSCR: rental income proof (lease), property appraisal. Bank statement: 12-24 months business bank statements. Hard money: property details, ARV estimate, repair budget. Portfolio: tax returns, credit report, property appraisal.
3. Check Your LTV
Private lenders focus on Loan-to-Value. Most require 65-80% LTV. Example: $500K property, 75% LTV = $375K max loan. Lower LTV = better rate and easier approval.
4. Compare 3-5 Lenders
Private lender rates vary by 2-4% for the same loan. Get quotes from at least 3 lenders. Compare rate, points, LTV, and closing speed. Compare private lender quotes →
Frequently Asked Questions
What are private mortgage lenders?
Non-bank lenders using their own or investor capital. Includes hard money (8-12%, short-term), portfolio (6.5-8%, long-term), and non-QM (6.75-9%, flexible income). Flexible underwriting, faster closing than banks.
How much do private mortgage lenders charge?
Hard money: 8-12% + 2-4 points. Portfolio: 6.5-8% + 0-1 point. Non-QM: 6.75-9% + 0-2 points. DSCR: 7.5-9.5% + 0-2 points. Conventional comparison: 6.09-6.66%.
Can I get a private mortgage with bad credit?
Yes. Hard money: 580-620+ credit, 65-75% LTV. Non-QM: 620+ credit, 80% LTV. DSCR: 640+ credit, 75-80% LTV. Lower credit = higher rate and lower LTV.
What is the difference between private and hard money lenders?
Hard money is a subset of private lending — short-term, high-rate, asset-based. Private lending is broader: includes portfolio (long-term, lower rates) and non-QM (30-year, flexible income).
How do I find private mortgage lenders near me?
Mortgage brokers, REI meetups, online platforms (Kiavi, Lima One, Visio), community banks/credit unions, or search "private mortgage lenders [city]". Always verify NMLS licensing.
Find Your Private Mortgage Lender
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