A hard-money loan is generally a loan that needs to close swiftly, or close under unusual circumstances.  You hear the term often enough, but most people simply do not understand what it means.  Also, many people are afraid of getting involved in a Hard-Money loan without understanding the details of one.  For instance, if someone needs to close their commercial loan in 30 days or under, they will most probably need a hard-money loan to accommodate that transaction.  

Typically, a hard-money loan has several characteristics.

• Its ability to close swiftly
• High Rates
• High Closing Costs/Fees
• Low Loan to Value
• Usually No Pre-payment penalty