A hard money loan is
practically a Sub-prime Loan that is based on collateral. It applies more emphasis on the equity they can lend on
your property rather than on your credit and income. For the most part it is an equity based loan.
The majority of the money for hard money loans
comes from private investors.
Basically because it is
more of an equity based loan it does not mean that only people with
credit and income problem apply and get hard money loans. Lots of
borrowers of hard money loans can qualify for a conventional loan. The
only reason they go for a hard money loan is because they are easier
and faster to get. It is common to get
funding in 5 to 7 days if the borrower can provide the necessary
information in a timely manor.