First time using private lending

[Kyle Gatesy]

I have my eye on a property with a single family home + carriage home for $360k and I am looking into private lending to avoid a 25% down payment for an investment property loan (that is what I have been offered by several lenders with a 780 FICO). I found two private lenders on FB and this is what they offered me: 

Lender 1) 100% LTV, 4% apr + 5 points

Lender 2) 100% LTV, 5% apr + 2 points

Both defer payments for 3 months and no prepayment penalty

My question is this a type of loan that is commonly used? I have listened to a lot of BP Podcast and I don't remember hearing about loans like this. I can't tell if I am nervous about landing my first deal or if there are true red flags with these lenders?

Let me know if you need any other info and thanks for your time!

Kyle G