Hard Money Loan

Updated 1 month ago ​by Open Listings

In a nutshell: 

Hard money loans are a way to borrow without using traditional lenders. Hard money lenders finance the loan based on the property in question, not on your credit score. If a buyer can’t repay the loan, the hard money lender will take the property and sell it themselves. 


  • You can often borrow up to 100% of your purchase price.
  • Ideal for “fix-and-flip” investors. Hard money loans tend to be short-term (1-5 years) so flippers can keep the property just long enough to turn a profit, sell the property, and repay the loan.


  • Usually these loans cost (percentage-wise) much more than an average mortgage, often times up to twice what a regular mortgage does, plus high origination fees.
  • Hard money lenders will frequently require you to back-up your loan with real assets.

Is this considered an all cash offer?
No, an all-cash offer assumes that cash is available on-hand, and the contract requires the buyer to deliver verification of such funds (bank statement, letter from bank, etc.). OL recommends writing an offer with financing but without loan contingency & submitting a detailed letter to the seller explaining your financing type. 

Pro Tip: 

Learn more about your mortgage options HERE