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What Is A Hard Money Loan?

A hard money loan is a type of loan that is typically secured by real estate, and is funded by private investors or companies rather than traditional banks or financial institutions. Hard money loans are often used by real estate investors who need quick financing or who may not qualify for traditional bank loans due to credit or income issues.

The term "hard money" refers to the fact that these loans are secured by collateral (usually real estate), and the lender's decision to lend is based primarily on the value of the collateral, rather than the borrower's creditworthiness. In other words, the lender is primarily concerned with the value of the property being used as collateral, rather than the borrower's ability to repay the loan.

Hard money loans typically have higher interest rates and shorter repayment terms than traditional bank loans, and may also require the borrower to provide a larger down payment or pay additional fees or points at closing. However, because they are typically funded more quickly and have more flexible underwriting criteria than traditional bank loans, they can be a useful tool for real estate investors looking to take advantage of time-sensitive opportunities.

To discover if a hard money loan is the right option for you contact our team at NW Alternative Mortgage today!


Lending Office

5335 Meadows Rd, Suite 388, Lake Oswego, OR 97035


Direct Line: 503-343-7999 


Office Hours

Mon - Fri

9:00 am – 5:00 pm

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