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Mortgage Glossary

Hard Money Loan

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A hard money loan is a short-term loan backed by the property, not your income. Private lenders fund it fast. Investors use it for quick deals.

What Hard Money Loan means

Rates and fees run higher because the term is short. The property secures the loan. Speed is the main draw.

Florida example

A Florida investor needs to close a flip fast. A hard money loan funds it in days. They repay it once the home sells.

Asset-based short-term financing

A hard money loan is a short-term loan backed by the property rather than your income or credit. Private lenders fund it fast, which suits investors flipping or rehabbing homes.

Rates and fees run high, and terms are short, often a year or two.

When it makes sense

Hard money works for quick purchases, fix-and-flips, or deals that cannot wait for traditional underwriting. You refinance or sell to pay it off.

It is a tool for specific strategies, not everyday buyers. Reach out and we will tell you if hard money fits your project.

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