Most junior loans available today are typically secured through which type of lender?

The most common source for junior loans is private lenders. Junior loans, often referred to as second mortgages or home equity lines of credit (HELOCs), typically involve less regulation and documentation than primary mortgages, which makes private lenders a more flexible option. Private lenders, including individuals or non-institutional investors, are often willing to take on the risk associated with junior financing because they can charge higher interest rates that reflect that risk.

In contrast, government lenders primarily deal with first mortgages and are focused on ensuring access to homeownership through programs that may not cater specifically to junior lending. Credit unions, while they do provide various loan options, often concentrate on primary lending products and may not be as active in the junior loan market compared to private lenders. Mortgage companies usually focus on initial mortgage financing and may have fewer options for subsequent financing that are as flexible as those offered by private lenders. This makes private lenders the most typical choice for securing junior loans today.