Private Buyer


DEFINITION of 'Private Buyer'

An individual or organization that is purchasing an asset and whose actions are not backed by a government or government agency. The private buyer is responsible for all costs associated with the transaction, and parties to the transaction can only pursue the private buyer for recourse in the case that there are problems with the transaction.

BREAKING DOWN 'Private Buyer'

Transactions with a private buyer typically carry more risk than those involving a public buyer, which generally refers to a government-backed entity.

For example, a private buyer might be a company that is purchasing the mortgage of a property. Because the company is not backed by the government, it does not have the "full faith and credit" that a governmental organization would. If the company fails to make mortgage payments, the party that sold the mortgage will not have the recourse of seeking payment from the government.

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  3. Full Faith And Credit

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  4. Ginnie Mae - Government National ...

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  5. Treasury Bill - T-Bill

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  6. Encumbrance

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    Unlike subprime mortgages issued by some conventional commercial lenders, Federal Housing Administration (FHA) loans do not ... Read Full Answer >>
  2. Can FHA loans be refinanced?

    Federal Housing Administration (FHA) loans can be refinanced in several ways. According to the U.S. Department of Housing ... Read Full Answer >>
  3. Can FHA loans be used for investment property?

    Federal Housing Administration (FHA) loans were created to promote homeownership. These loans have lower down payment requirements ... Read Full Answer >>
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    he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>
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