Finance
A Mississippi investor purchases a commercial property using a 'hard money loan.' Hard money loans are characterized by:
ALow interest rates and long terms
BShort terms, high interest rates, and asset-based underwriting focused primarily on the property's value rather than the borrower's creditworthiness✓ Correct
CGovernment-backed guarantees
DRequirement for 50% down payment in all cases
Explanation
Hard money loans are asset-based, short-term loans from private lenders at higher interest rates than conventional financing. Underwriting focuses primarily on the property's value (LTV) rather than the borrower's income or credit. They are commonly used for fix-and-flip projects, distressed properties, and situations where quick closing is needed.
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