A Hard Money Loan is an asset based commercial loan that can be used for land, commercial and single-family investment properties. It is designed to provide a source of financing for borrowers that have substantial equity in their property but may not meet traditional bank guidelines. As a result, the loans tend to be the most flexible.
Borrower: May be an individual or a company
Max Loan to Value: 60% for leased properties and 50% for unleased properties
Term: 6 to 24 months with interest only payments due monthly
Loan amounts: $100,000 to $2,000,000
Rate:12-14%