03/24/2023
A hard money loan is a type of short-term, asset-based financing that is often used by real estate investors. These loans are secured by the value of the property or asset being purchased, rather than the borrower's creditworthiness or income.
Hard money loans typically have higher interest rates and fees than traditional bank loans, and are usually given for a shorter period of time. They are common for borrowers who need quick access to funds or who do not qualify for traditional financing due to credit issues, income limitations, or other factors.
Because of their higher rates and fees, hard money loans are generally considered a last resort option and are generally used only when other sources of financing are not available.
