Differences Between Hard Money Loan and Purchase Money

• loan that a home buyer takes out

• you can purchase any type of property such as a single-family home, duplex or condominium.

Purchase Money Loan

• is secured by the property you plan to buy

• this means that the lender has the right to take the home and sell it to recoup their money in the event that you fail to pay the loan or default on the property.

Purchase Money Loan

• can be approved without owning a home at all

• requirements do vary from lender to lender

Hard Money Loan

• are more interested in the project, your ability to put some of your own money into it and your ability to repay the loan

• hard money lenders usually want the borrower and the security to qualify for a hard money loan.

Hard Money Lenders

• Like a purchase loan, the property is used as collateral in the event that you default on your loan.

Hard Money Loan

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