Finance
What is a 'hard money loan' and how is it commonly used in Nevada real estate?
AA loan from the federal government for low-income buyers
BA short-term, asset-based loan from private lenders typically used by investors for fix-and-flip properties or when conventional financing is unavailable✓ Correct
CA loan with a fixed interest rate guaranteed by the state of Nevada
DA loan that requires a 50% down payment by law
Explanation
Hard money loans are short-term, high-interest loans secured by real property, provided by private investors or companies rather than traditional banks. In Nevada's active investor market, particularly in Las Vegas and Henderson, hard money loans are commonly used for fix-and-flip projects, distressed properties, or when borrowers need quick closings. They typically carry higher rates and fees.
Related Nevada Finance Questions
- What is the impact of Nevada's 'no state income tax' on real estate investment decisions?
- What is 'negative amortization' and why is it risky in Nevada real estate?
- A Nevada borrower's loan application shows a gross monthly income of $7,500 and total monthly debt payments of $2,850 including proposed housing costs. What is the debt-to-income (DTI) ratio?
- A point on a mortgage loan equals:
- A Nevada home buyer obtains a 30-year fixed mortgage at 7% for $400,000. What is the approximate monthly principal and interest payment?
- What is a due-on-sale clause in a Nevada mortgage or deed of trust?
- What is 'mortgage fraud' and what are common forms seen in Nevada?
- What is the 'VA loan benefit' and how does it differ from FHA and conventional financing for Nevada veterans?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →