Hard Money Loans

Hard Money Loans

What is a hard money loan?

Hard money loans are an alternative form of capital, provided outside of traditional lending channels, either by individuals or companies. Unlike traditional or bridge loans, hard money loans are not subject to the same regulations that apply to financial institutions. Therefore the loan can be used for a wider variety of purposes.

Hard Money Loan Interest Rates

Most hard money loans carry high interest rates compared to a traditional loan like a conventional mortgage. Commonly, hard money loan rates are around 7-15 percent, which is about double or triple a bank loan. This is generally the case because real estate investment can be high-risk. Additionally, most hard money lenders do not require the same level of arduous vetting (including examining your financial history, credit score, and existing debt from things like credit cards) as traditional lenders, which makes this mortgage type more accessible to even those with bad credit.