June 24, 2025

Written by: Daly Kay DiNatale

Welcome to the world of finance! You must be here because you are looking for a loan. We are a hard money lending company located in Sunny South Florida!

Well, a hard money loan is a loan backed by a “hard” asset, something like a tangible property that produces a profit to repay the loan quickly.

We offer our clients the ability to close a loan in just days, not weeks! Whether you are a new investor or an experienced veteran, we look forward to helping you achieve success as your lending partner.

A normal mortgage is secured by the value of the home and backed by the borrowers’ ability to repay the loan in monthly installments, where a hard money loan are forms of private loans. The funding is provided by private lenders as opposed to the government-regulated financial institutions.

The difference is in the loan terms, the approval process, and the purpose of the loan.

Hard money financing is used by real estate investors who need short-term funding for an investment deal. Good deals go fast and as the old tale tells, cash sells fast. Hard money loans are used typically for one of two short-term purposes: they finance fix-and-flip deals where the goal is to get your money back and repay the loan and to bridge the gap between an investment property purchase and longer-term financing.

Hard money loans have typically become the go-to for house flippers who can’t or don’t want to borrow from a bank. Typically, their credit isn’t great or because the deal doesn’t pass a traditional lender’s strict guidelines. With that being said, the borrower’s cost of hard money, the interest fee, is higher for these reasons.

There are several differences between the two; hard money loans have terms of 6 – 18 months, when traditional loans are typically for over 30 years. Hard money loans usually carry an interest rate that’s 4% to 10% higher than traditional loans. As well as, hard money loans are intended for short term investors where traditional loans are for owner-occupied properties, and hard money loans are backed only by property as collateral, while traditional loans are backed by the property and the borrower’s credit.

Are you ready to secure your loan? Contact us today at  (866) 999-2011 or shoot us an email info@capitalfunding.com and one of our representatives will assist you!