Frequently Asked Questions

 A hard money loan is a type of short-term loan secured by real estate. These loans are typically used by real estate investors for quick financing, often based on the property's value rather than the borrower's creditworthiness. 

 Hard money loans are primarily asset-based, focusing on the property’s value rather than the borrower's credit score. They offer faster approvals and funding but usually come with higher interest rates and shorter terms compared to traditional loans. 

Hard money loans usually have terms ranging from 6 months to 3 years, with interest rates between 8% and 15%. They often require a down payment of 20% to 30% of the property's value.er to this item.

 Yes, hard money lenders prioritize the property's value and your equity in it over your credit score, making it possible to secure a loan even with poor credit. 

 Hard money loans can be used to finance various property types, including residential, commercial, industrial, and land properties. 

 Approval and funding for hard money loans can be completed in a few days to a few weeks, depending on the lender and the complexity of the transaction. 

 A fix and flip loan is a short-term loan used by real estate investors to purchase and renovate a property with the intention of selling it for a profit. 

 Qualification criteria can vary, but typically lenders look at the property's potential value after renovation (ARV), your experience in real estate, and the cost of the renovation. Good equity and a sound business plan also help.