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About Hard Money Loans

A private money or "hard money" loan is a loan made to an investor or other individual using real estate as collateral. Typically, the lender in these scenarios is an individual or private lending company as opposed to a bank or credit union and the borrower is most commonly a real estate investor who needs cash to purchase or rehab a property. Hard money loans are usually taken by borrowers who have been denied a loan by a traditional lending institution or who need to close a transaction more quickly than a bank will allow. For this reason, the rates and fees associated with such a loan tend to be higher than for a conventional mortgage. Additionally, hard money lenders may require the borrower to bring a significant amount of cash or equity to the closing in order to protect their interest in the event of a default.

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Legitimate vs Predatory Lenders

Anytime a borrower seeks out alternative or special financing, like a hard money loan, it is extremely important to do the homework. Everyone considering a hard money loan should know what to expect, how to evaluate the options presented and what kinds of documentation will be expected at closing. ...

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Types of Foreclosure

In the United States, there are generally two kinds of foreclosure processes to consider, judicial foreclosure and non-judicial foreclosure. States typically make the rules about which type will be in play on a given property but in some states both types are possible so it is important to understan...

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What is a Deed of Trust?

A deed of trust, also called a trust deed, is a document that represents a real estate purchase where there is a loan involved. Many people who have a deed of trust simply refer to it as their mortgage or their home loan. But having a deed of trust is technically a little bit different from that. ...

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