FinanceIntermediateDelaware Exam
Which of the following best describes a 'hard money loan' in Delaware real estate?
AA traditional bank mortgage with strict qualification requirements
BA short-term loan secured by real estate, typically from private investors at higher ratesCorrect
CA government-backed loan with strict collateral requirements
DA loan with prepayment penalties that make it 'hard' to pay off early
Why A short-term loan secured by real estate, typically from private investors at higher rates Is Correct
Answer B: A short-term loan secured by real estate, typically from private investors at higher rates
A hard money loan is a short-term, asset-based loan typically provided by private investors or companies. It is secured by the property and carries higher interest rates and fees than conventional financing.
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
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