A hard money mortgage isn’t for everyone. However, these high interest loans can be a smart choice for borrowers who don’t qualify with traditional banks.

Here are some of the pros of hard money mortgages:

- No credit check. Because hard money mortgages are based on the borrower’s equity (i.e. down payment), credit becomes irrelevant.

- No income verification or job needed. Hard money lenders don’t care how much money you make as long as you can bring some to the closing table.

- Useful for movers. If you’re moving to a new home but haven’t been able to sell your current property, you may be still be able to take out a hard money mortgage. Many traditional lenders scrutinize these deals closely and are quick to deny applicants that already have a home loan.

- Useful for self-employed borrowers. The lack of income verification makes hard money mortgages attractive to self-employed borrowers, people working on tips or commissions, and others who have difficulty documenting income.

- A quick fix. If you’re in a tight spot and need a quick loan, a hard money mortgage may be able to solve your problem. Many borrowers take out hard money mortgages for one to three years while they repair their credit. Afterwards, they refinance to a lower interest rate with a traditional lender.

Hard money mortgages offer some benefits you can’t get through any traditional lending product. However, it’s important to consider your options thoroughly before making a decision. Cons of Hard Money Mortgages can help you consider the drawbacks of these loans.