Finance
In New York, a 'hard money loan' used for real estate investment is characterized by:
AVery long amortization periods and low interest rates
BShort terms, high interest rates, and being secured primarily by the value of the real property (asset-based lending) rather than the borrower's creditworthiness✓ Correct
CGovernment backing through FHA or VA programs
DFixed interest rates set by the Federal Reserve
Explanation
Hard money loans are short-term, high-interest loans made by private lenders (not banks) and secured primarily by the real property collateral rather than the borrower's credit. They are commonly used by real estate investors for fix-and-flip projects, bridge financing, or when traditional bank financing is not available. Hard money lenders in New York must comply with applicable usury laws.
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