Hard Money Loan

A type of loan that is secured by real property or collateral. Hard money loans are considered loans of "last resort" or short-term bridge loans. They are primarily used in real estate transactions, with the lender generally being individuals or companies and not banks.
Hard money loans are also known as asset-based loans, bridge loans, or STABBL loans (short-term asset-backed bridge loans).
Instead of relying on the creditworthiness of a borrower, hard money lenders instead weigh the merits of the investment that a borrower is looking to fund and use that investment as collateral. This reduces risk for both the borrower and lender.
The majority of hard money loans are used as a short-term solution until permanent financing can be obtained. They are commonly used by investors, such as house flippers or developers who renovate properties to sell. They might also be a solution if facing foreclosure.
Hard money lenders typically charge a higher interest rate because they're assuming more risk than a traditional lender would. They may also require a higher down payment than a traditional loan would.