A hard money loan is a asset-based loan financing in which a borrower receives funds secured by the value of a parcel of real estate by a private lender. Hard money lenders are sometimes called private lenders and typically lend at higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Private Lending Groups in Chicago has hard money loans available at Chicago Rehab Loans.com

Hard money is similar to a bridge loan which is used by commercial lenders and has similar criteria for lending as well as cost to the borrowers. Commercial lending and private lending guidelines very rarely exceed 65% loan to value.The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as properties in foreclosure or real estate being bought through a short sale.

Hard money loans usually close very quickly and have more flexible lending guidelines. Rehab loans are often times originated by private lenders.