Hard Money Loan

A hard money loan is strictly collateral-based lending, backed by some form of property. These loans are widely used in real estate and are typically provided by investors, investment groups, or commercial lenders. Financing with a hard money loan can come with a lot of risk, as the “hard” in “hard money loan” refers to the asset used to back the loan, which the lender can claim ownership of to cover losses if the loan is defaulted.

Hard money loans are typically short-term loans, ranging from 1-3 years.