Hard Money is a term that is used almost exclusively in the United States and Canada where these types of loans are most common. The term "Hard Money" generally infers that the borrower has actual “hard” cash invested.

The hard money industry began in the late 1950s when the credit industry in the US underwent drastic changes.

The hard money industry suffered severe setbacks during the real estate crashes of the early 1980s and early 1990s due to lenders funding properties at well over market value. Since that time, lower LTV rates have been the norm for hard money lenders seeking to protect themselves against the market's volatility.

Legal & Regulatory Isuues

From inception, the hard money field has always been formally unregulated by state or federal laws, although some restrictions on interest rates (usury laws) by state governments restrict the rates of hard money.

Portions of this content are licensed under the GNU Free Documentation License. Material used was from an article “Hard Money Loan” from Wikipedia, the free encyclopedia.

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