Finance
In South Carolina, a 'hard money loan' is typically characterized by:
ALow interest rates and long terms
BHigher interest rates, shorter terms, and asset-based (not credit-based) underwriting✓ Correct
CGovernment backing by FHA or VA
DStrict credit score requirements
Explanation
Hard money loans are short-term, high-interest loans based primarily on the value of the collateral rather than the borrower's creditworthiness. They are used by investors who need quick financing or can't qualify for conventional loans.
Related South Carolina Finance Questions
- In South Carolina, what is a 'purchase money first mortgage'?
- A South Carolina lender 'locks' the interest rate at time of application. This means:
- In South Carolina, what is 'amortization' in a mortgage?
- What does PMI (Private Mortgage Insurance) protect in a South Carolina home loan?
- In South Carolina, what is 'interest-only' mortgage financing?
- What is a 'due-on-sale clause' in a South Carolina mortgage?
- A South Carolina borrower takes a $200,000 mortgage at 6% annual interest. What is the first month's interest payment using simple interest?
- A South Carolina 'assumable mortgage' allows:
Practice More South Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Carolina Quiz →