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\n <\/div>\n \n Start Making Offers Without Waiting to Sell Your Home<\/h3>\n
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.<\/p>\n \n
Editor\u2019s note: This post is for educational purposes and is not intended to be construed as financial advice. HomeLight always encourages you to consult your own advisor.<\/em><\/p>\n A hard money lender provides short-term loans primarily for real estate investments. These lenders typically work with house flippers<\/a>, developers, and buyers of rental properties<\/a>. Instead of relying heavily on a borrower’s credit score, hard money lenders base the loan amount on the property\u2019s after-repair value (ARV)<\/a>. ARV is the estimated value of the property after renovations are complete.<\/p>\n Interest rates for hard money loans are generally higher than traditional loans, reflecting the increased risk. Borrowers also pay additional fees, such as origination fees and points. If a borrower fails to repay the loan, the lender can foreclose on the property, as the loan is secured by the real estate itself.<\/p>\n Here are some quick bullet points on how hard money loans work. Due to a higher risk, these loans are typically offered on a short-term basis, with higher funding and higher interest rates.<\/p>\n","protected":false},"excerpt":{"rendered":" Learn about hard money lenders in South Florida. Discover quick financing options for real estate investors and homeowners.<\/p>\n","protected":false},"author":358,"featured_media":46083,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[192,629,632],"tags":[],"class_list":["post-46079","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-buyers","category-home-financing","category-mortgage-loans"],"acf":[],"yoast_head":"\nWhat is a hard money lender?<\/h2>\n
How does a hard money loan work?<\/h2>\n