Hard Money Loans
What you need to know.
Lets Explore
Hard Money Loans
A hard money loan is a secured loan guaranteed by the property it’s being used to purchase. The “hard” part of “hard money” refers to the tangible asset that backs the value of the loan.
Secured by real property
Hard money lenders are usualy private investors
Higher interest rates, faster funding
Often used for Flipping, Investments, Commercial Property
A deeper dive
The Pros and Cons of Hard Money Loans
Hard Money Loans Pros
- Faster approval process
- Approval based on property, not credit history
- Flexible loan terms
- Less strict underwriting
- Fix-and-flip properties quickly
Hard Money Loan Cons
- High interest rates
- Typically large down payments, upfront fees and closing costs
- Less time to repay because of shorter terms
- Riskier than traditional financing
- Can carry a prepayment penalty
