Bridge & Hard Money Loans Explained

Hard Money loans are a specific type of asset based financing. Hard Money Loans are short-term loans taken out to finance commercial projects, which are backed by the value of property instead of the creditworthiness of the borrower. Hard money loan tend to have a lower loan to value (LTV) ratio than a traditional loan because the property is the only protection if the borrower defaults. The default risk also creates a high interest rate for hard money loans.

Bridge loans are for businesses that are in some form of transition, and do not qualify for a traditional loan.

What can the money from Hard Money & Bridge Loans be used for?

  • REO Acquisitions
  • Short sales
  • Rehab financing
  • Foreclosure bailout

Different types of assets that can be financed under Hard Money/ Bridge Loans:

  • Commercial Buildings
  • Commercial Property

See more on Prime Commercial Lending’s Bridge & Hard Money Loan program, here.

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