Types of Borrowers Who Benefit from Hard Money Loans

Hard money loans present a viable alternative to traditional forms of lending. Here are the basics of hard money loans and who might benefit from them the most.

Hard Money Loans

A hard money loan is provided by a hard money broker outside of the normal lending industry. These are private lenders that make loans on their own terms. The interest rates on these loans are typically very high and the terms usually come in the form of a balloon loan.

Borrowers with Bad Credit

One group of people that can definitely benefit from hard money loans is those that have bad credit. These lenders make a habit out of dealing with people that have less than perfect credit. Typically, the lender will not have an issue lending to someone that is on the verge of foreclosure or in some other situation with bad credit.


Traditional loans typically have income requirements associated with them. If you do not make enough money to qualify for a traditional loan, a hard money lender may be willing to work with you.

Borrowers in a Time Crunch

If you need money quickly, a hard money lender might be the best option for you. They can typically get you your money much quicker than a traditional bank.

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