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» Hard Money is a Bridge Loan

Posted on 10/18/2004
The purpose of a hard money loan is to give the borrower enough time to arrange for long term financing. If the loan is for a purchase, the borrower uses a hard money loan to close quickly and gains up to 36 months of 'breathing space', during which time, long term conventional financing can be arranged.

If hard money is used to refinance a property, a hard money loan can be closed quickly, once again giving the borrower quick access to working capital and time to arrange for longer term financing if necessary.
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