Hard Money Loans

Hard money loans are short-term, high-interest loans that are typically secured by real estate. These loans are often used by investors to purchase properties or to finance renovations. They can be a good option for borrowers who may not qualify for traditional mortgages due to credit issues or other factors.

Key features of hard money loans:

• Short-term: Hard money loans typically have shorter terms than traditional mortgages, often ranging from a few months to a year.
• High interest rates: These loans come with higher interest rates than traditional mortgages, as they are considered riskier for the lender.
• Secured by real estate: Hard money loans are secured by the property being financed, which means the lender can foreclose on the property if the borrower defaults on the loan.
• Quick funding: Hard money lenders can often provide funding more quickly than traditional mortgage lenders.

Hard money loans can be a good option for borrowers who need quick financing for a real estate investment. However, it’s important to be aware of the high interest rates and short-term nature of these loans.