Finance
In South Dakota, a 'hard money loan' in real estate is characterized by:
ALow interest rates from conventional lenders
BShort-term financing from private investors or companies, based primarily on collateral value rather than borrower creditworthiness, with higher rates and fees✓ Correct
CGovernment-backed financing for first-time homebuyers
DFixed-rate conventional mortgages
Explanation
Hard money loans are short-term, asset-based loans from private lenders (not banks). They are based primarily on the value of the collateral (the property) rather than the borrower's credit score or income. They carry higher interest rates and fees and shorter terms, often used by investors for fix-and-flip projects.
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