Hard Money

A hard money loan is a type of loan that is secured by real property. Hard money loans are considered loans of "last resort" or short-term bridge loans. These loans are primarily used in real estate transactions, with the lender generally being individuals or companies and not banks. (Hard Money loan monthly payments are usually interest only.)

Program Highlights

Hard money loans are primarily used for real estate transactions and are money from an individual or company and not a bank.
A hard money loan, usually taken out for a short time, is a way to raise money quickly but at a higher cost and more required down payment.
Because hard money loans rely on collateral rather than the financial position of the applicant, the funding time frame is shorter.
Terms of hard money loans can often be negotiated between the lender and the borrower. These loans typically use property as collateral.
Default by the borrower can still result in a profitable transaction for the lender through collecting the collateral.