Hard Money Loan

There are two main types of home Construction loans. They are a Construction-to-permanent and Stand-alone construction loan. For a Construction-to-Permanent loan, you borrow to pay for the construction of your home. When you move in, the lender converts the loan balance into a permanent mortgage. Its essentially two loans in one. 

Moving In

Hard money loans are commonly used by property flippers who plan to renovate and resell real estate. There is a higher cost of a hard money loan, but it can be offset by the fact that the borrower intends to pay off the loan quickly. Most loans are for one to three years. 


The approval process for a hard money loan is often much quicker than a traditional loan. They are backed by private investors that can make decisions faster because they often don't have to make the same credit checks. Instead, the lenders usually use the applicant's ability to make loan payments for the investor.