Hard money loans can be used when people do not have the best credit but they have collateral they can put up to secure the loan. Another difference between hard money loans and traditional mortgages is the turn around time. When you go for a traditional mortgage, it can take months to receive the funds. When you work with hard money lenders, you will get the funds much quicker. Hard money loan rates are higher but sometimes, it is worth it.
For commercial real estate investors who have a great deal that they need to close on right away, getting a hard money loan may be a better option than a traditional mortgage because it will give them access t