Finance
A Connecticut property investor uses a 'hard money loan' to purchase a distressed property. Hard money loans are characterized by:
ALow interest rates and long terms provided by traditional banks
BHigher interest rates, short terms, and asset-based underwriting (primarily based on property value rather than borrower creditworthiness)✓ Correct
CGovernment-backed loans requiring income verification
DFixed interest rates with no prepayment penalty
Explanation
Hard money loans are short-term, asset-based loans from private lenders or investors. They carry higher interest rates and fees, shorter terms (typically 1-3 years), and underwriting focused primarily on the property's value and equity rather than the borrower's credit.
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