Core Insights - Hard money loans serve as a viable financing option for real estate investors, house flippers, and home buyers with poor credit, providing quick access to funds backed by real property [2][5][24] Group 1: Definition and Functionality - A hard money loan is a secured debt product backed by real property, allowing individuals with negative credit histories to access funding [2] - These loans are typically short-term, ranging from a few months to a few years, with options for interest-only payments during the term [6][9] - Lenders assess equity in the home and loan-to-value (LTV) ratios, focusing more on home equity and income than credit scores [5][25] Group 2: Pros and Cons - Pros include easier accessibility for individuals with poor credit, fast funding times (sometimes as quick as one week), and the option for interest-only payments [9][10] - Cons involve higher interest rates, steep origination fees, and the risk of foreclosure if timely payments are not made [9][10][24] Group 3: Alternatives to Hard Money Loans - Alternatives include home equity lines of credit (HELOCs), home equity loans, cash-out refinancing, and government-backed mortgages, which may offer lower rates and down payment requirements [13][21][22]