Private mortgages serve as an essential solution for borrowers who often do not meet the eligibility criteria for traditional bank mortgages. This can be attributed to various factors such as insufficient income, recent job transitions, new businesses, unsuitable properties for banks (including bare land), poor credit history, past bankruptcy or credit proposals, excessive debt, high debt-to-income ratios, urgent closing requirements, and other similar circumstances.

The private mortgage process is generally streamlined, straightforward, and expeditious, often requiring fewer documents compared to conventional mortgages. However, it’s important to note that private mortgages are intended as short-term solutions and are not advisable for long-term financing. They should only be considered when addressing immediate needs with a clear exit strategy in mind.

Private mortgages typically entail higher interest rates and associated fees compared to conventional bank mortgages due to the increased risk involved.