Hard money loans - Frequently Asked Questions

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A Hard Money Loan is a way for you to borrow money for real estate without using traditional mortgage lenders.  Instead, the funds come from individuals or investors who lend money based primarily on the property you are using as collateral.

Quicker closings (usually within 10 days), less documentation required, and shorter repayment periods. Because of these factors, interest rates are typically higher than traditional loans. The maximum LTV is 75%, so you will need assets to qualify.

Hard money may be appropriate if you can't get traditional funding for your real estate purchase / refinance because of credit issues, limited income, or property condition. Keep in mind, property usage is a factor in these types of loans.