Hard Money Lenders

The hard money loan loan is basically a real estate loan that is secured by a real property. The hard money loan is referred to as private loans or asset-backed loan. The duration of these loans is short which is usually one year or less. There are many differences between the regular conventional loans which are offered by many institutions such as the banks or hedge funds and the hard money loans. The main difference is in the criteria used among both hard money and conventional loans; the conventional loans are given after assessing the borrower’s credibility, income and ability to repay the loan and the hard money lenders are given after assessing the value of the property that is used as collateral. The hard money lenders base their decision both on the value of the property and the borrower’s ability to repay the loan. The amount of loan is generally between 50-70% of the value of the collateralized property and the interest rates and fees charges are higher than the conventional loans. However, anyone who wants short-term financing that is readily available, hard money loan is the only solution.

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