Hard Money Loan is a short-term, asset-based loan secured by real estate, originated by private lenders rather than traditional banks. Hard money is business-purpose only — it cannot be used for owner-occupied or consumer-purpose financing.
Typical terms: 6–24 month duration, interest-only payments, 10–14% rate, 1–4 points, 65–80% loan-to-value (LTV) or loan-to-after-repair-value (LTARV). Common use cases: fix-and-flip acquisition + rehab, bridge to permanent financing, BRRRR acquisition.
Hard money funds fast — 48 hours to 14 days from application — because underwriting weighs property value over borrower income. Borrowers must show liquidity, prior experience (for repeat-borrower programs), and entity vesting.