FAQ Category: Investing

No, a hard money loan is usually only offered by private lenders or alternative lenders in the real estate industry rather than banks or credit unions. Unlike financial institutions, these private investors typically only offer short-term loans that might be 10-15 percentage points higher than traditional mortgages.

It’s a type of short-term financing for real estate investment that is secured by the property you want to renovate or fix and flip. Approval amounts from hard money lenders are typically based on a 50-75% loan-to-value (LTV) of the property being used as collateral. The repayment terms generally range from 6-24 months, while interest …

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