FinancingHomebuying Glossary
Hard Money Loan
A short-term loan from a private lender, based mainly on the property's value rather than your credit.
In plain English
Hard money loans come from private investors or companies rather than banks, close quickly, and are secured primarily by the property itself. They carry much higher interest rates and shorter terms than conventional financing.
Why it matters
These are typically used by real estate investors doing renovations or flips, not first-time buyers financing a primary residence — worth knowing the term even if it's not the right tool for most buyers.
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