Hard money loans are a form of collateral-backed loan that real estate assets secure. Those who have the necessary collateral can obtain them, even if they don’t have good credit. What makes it strange is that the lender doesn’t rely on you to pay the loan back. That’s why your credit doesn’t play a significant role in the process.
Your hard money lender will base your loan primarily on how much your collateral is worth. For example, if you default on your loan, they will take possession of the property you used for security. Let’s find out more about what hard money loans are and how they work.