Fast, Asset-Based Financing When Timing Matters
Private money, also known as hard money financing, is designed for borrowers who need fast, flexible funding or who may not qualify for traditional bank financing. These loans are commonly used by real estate investors, developers, and borrowers with time-sensitive transactions.
What is a Private Money Loan?
Unlike conventional mortgages, private money loans focus primarily on the property's value and equity rather than strict income and underwriting guidelines. This allows for quicker approvals and faster closings when speed is critical.
Private money loans are intended as short-term financing solutions, not long-term mortgages.
How Do Private Money Loans Work?
Private money loans generally have higher interest rates than traditional financing. However, they typically offer interest-only monthly payments, helping keep monthly obligations lower during the loan term.
At the end of the loan term, the remaining principal balance is due as a balloon payment, which is commonly paid off by refinancing into long-term financing or selling the property.
Common Uses
