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What is hard money loans?
Hard money loans are loans that is lent asset based. Hard money lenders normally charge an upfront fee of normally 6% and the interest rate can be somewhere around 15%. Most hard money lenders will only lend up to 65% loan to value. Hard money loans are very expensive and should only be used for short term basis.

Here is an article I recently wrote on the basics of hard money loans:


Hard Money Mortgages

Hard money mortgages are issued by private investors or private companies. Hard money is used for securing many types of real estate. Like mortgages, financing is secured by using the value of real property as collateral. Hard money lenders are also referred to as "asset-based" lenders because their focus is primarily on the collateral used for the loan, and they do not place as much emphasis on borrowers' credit histories.

Interest rates on hard money loans are higher than those of formal lending institutions, but funding typically takes place more quickly and with less documentation.

Hard money lenders are most often used by investors who require quick funding to take advantage of real estate opportunities. These types of lenders focus on commercial loans and income-producing residential properties, but generally do not participate in the single-family, owner-occupied residential market.

Lenders are typically regulated at the state level through a state's Department of Real Estate, so regulations vary. Generally, at least one person associated with hard money lending must have a valid mortgage loan originator's license.


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