What is a hard money loan?


What is a hard money loan?


Many lenders focus on credit scores and history in determining whether to lend money to a borrower to protect themselves from the potential for loss. This means that individuals with a poor credit history tend to have a hard time getting new credit.

Answer and Explanation:

A hard money loan is a loan based on the value of the collateral.

Unlike a mortgage or secured loan with collateral where banks issue them because...

See full answer below.

Become a member to unlock this answer! Create your account

View this answer

Learn more about this topic:

What Is a Bank Loan?

from Financial Accounting: Help and Review

Chapter 1 / Lesson 21

Related to this Question

Explore our homework questions and answers library