You may have heard about hard money loan. Most of the time, investor are curious about hard money loan and hard money lenders. What is this kind of loan? How is this going to help me? Will it be beneficial for my commercial property or investment property? There are just too many things that you need to learn about hard money loan before availing one.

First, let’s find out what hard money means. Money, when discussed among investors fall under two categories – soft and hard. Soft money is usually easier to avail of and have flexible terms. In opposite, hard money is much restrictive and has very specific terms. As compared to soft money that is offered by typical mortgage lender, hard money loan is offered by private individuals just like most of us. So the term of payment for hard money loan differs from one lender to another lender.

In most cases, hard money lenders will offer you loan for up to 70% of After Repaired Value (ARV). Let’s say that need help to repair for your house. The current value of your house is $45,000, the repair will cot around $20,000. After repair your house’s value is $100,000, so hard money lenders can lend you up to $70,000 to cover for the repair of the house.

The typical interest rate for this kind of loan is somewhat higher. This varies from 12% to 20% per year and terms of payment could be from six months to a few years. These rates differ from one person to another person, depending on the borrower’s experience and credit history.

If you are looking for hard money lenders to help you to refinance mortgage, you can check the Internet. The Web offers a lot options for your hard money loan needs. Just do some background research about the lenders to ensure that you will be getting the funds the soonest possible time.