What are the types of hard money?
Hard money loans are a type of financing that is secured by real estate, typically used as a short-term loan for flipping houses or rehabilitating properties. These loans are often characterized by higher interest rates and shorter repayment periods than traditional mortgages.
There are several different types of hard money loans, including:
Rehab loans: These loans are used to finance the renovation or repair of a property.
Bridge loans: These loans are designed to bridge the gap between the purchase of a property and the availability of long-term financing.
Development loans: These loans are used to finance the construction of new developments or the rehabilitation of existing properties.
Refinance loans: These loans are used to refinance an existing mortgage or to access equity in a property.
Commercial loans: These loans are used to finance the purchase or renovation of commercial properties.
It's important to carefully consider the terms of a hard money loan, including the interest rate, fees, and repayment period, before agreeing to borrow the money. Hard money loans can be more expensive than traditional financing options, so it's important to understand the terms and make sure you can afford the payments.