Is Private Funding mortgage safe or not? A private mortgage is a house loan that is financed through a private source of funds rather than a standard mortgage lender, such as friends, family, or a business. It can help folks who are having trouble getting a mortgage using the traditional method. If done appropriately, this type of mortgage can benefit everyone involved. Things can, however, go wrong if you don't take precautions—both in terms of your relationship and your finances. Keep the overall picture in mind as you consider whether to borrow or lend through a private mortgage. Create a win-win situation in which everyone benefits financially while avoiding unnecessary risk. Advantages of a P...