Finance
A 'hard money loan' in Tennessee real estate investing is characterized by:
AA fixed rate government-backed loan
BShort-term, high-interest financing from private lenders based primarily on property value rather than borrower creditworthiness✓ Correct
CA loan that is difficult to qualify for based on strict DTI requirements
DA loan for properties that are difficult to finance conventionally due to condition
Explanation
Hard money loans are short-term, high-interest private loans secured by real estate, typically used by investors for fix-and-flip projects. Lenders focus primarily on the property's value (loan-to-value), not the borrower's credit or income.
Related Tennessee Finance Questions
- In Tennessee, a 'construction-to-permanent' loan is designed to:
- A borrower's debt-to-income ratio (DTI) is calculated as:
- An adjustable-rate mortgage (ARM) includes a 'cap' provision that:
- A mortgage assumption allows a buyer to:
- Tennessee law provides homeowners with a right of redemption after a residential foreclosure for a period of:
- The Community Reinvestment Act (CRA) requires federally insured banks to:
- A USDA Rural Development loan is designed to help:
- The Federal Reserve's primary tool for influencing mortgage interest rates is:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →