Private mortgage lenders are not like banks. They can decide as they go how much risk they are willing to take on. They are not under the same overly structured regulations as banks and other traditional financial institutions, nor do they have to require unrealistic upfront equity payments if they don’t want to. They have the freedom to choose what they are willing to do, based on your ability to pay, and other factors. They can work with you to decide what you can reasonably afford and work out an arrangement that is good for both parties.