What is a Hard Money Loan?

Hard Money Loan

What is a Hard Money Loan?

A hard money loan is a specific type of asset-based/equity-driven loan financing, in which a borrower receives funds that are secured by a piece of property that is either owned or financed. Hard money loans are typically issued at a much higher interest rate than conventional commercial or residential property loans. Hard Money loans are almost never issued by a commercial bank or other depository entity, largely because a majority of a banks criteria for a loan is dependent on an individual's credit score. Hard money is similar to a bridge loan, which will usually have similar criteria for lending as well as the interest rate borrowers are to pay.

Our hard money loan refers to an equity-based loan with a high interest rate, we close very quickly. This is very helpful when you need to secure an asset quickly or possibly a distressed financial situation, such as foreclosure on a home or bankruptcy. ( bailouts are allowed)

HGRN Capital Writes hard money mortgages Nationally. We have preferred states - NY,NJ, CT, MASS, FL. The credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the maximum loan-to-value ratio is 65-70%. That is, if the property is worth $1,000,000, we would advance $650,000-700,000 against it. This low LTV provides added security for us and our investors.