When a deal is unique or doesn't fit into an institutional lender's criteria a private mortgage is an alternative source of financing. Private lenders tend to be more regional in nature as knowledge of the local market becomes a very important lending consideration when looking at higher risk mortgage opportunities. Private lending is also used for construction projects, quick closing for property acquisitions, or commercial property financing for industries or building types not supported by the banks. While private mortgages can be open or closed, they are usually one or two year terms and payments consist of interest only.