Finance
In Arizona, a 'hard money' loan is typically characterized by:
ALower interest rates than conventional loans due to reduced risk
BAsset-based lending at higher interest rates, often used by investors when conventional financing is unavailable, with the property serving as primary collateral✓ Correct
CGovernment-backed lending for low-income borrowers
DA fixed interest rate guaranteed for the life of the loan
Explanation
Hard money loans are asset-based—the lender primarily considers the property's value rather than the borrower's creditworthiness. They typically carry higher interest rates and fees, shorter terms, and are commonly used by real estate investors, fix-and-flip buyers, or when conventional financing isn't available.
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