What characterizes hard money lending?

Hard money lending is characterized by loans that are secured by real estate, which often come with higher interest rates and shorter repayment terms compared to conventional loans. This type of financing is primarily used by investors or borrowers who may not qualify for traditional financing due to various reasons such as credit history or the nature of the property.

In hard money lending, the focus is more on the value of the property being used as collateral rather than the borrower's creditworthiness or financial situation, which allows for quicker access to funds. The higher interest rates reflect the increased risks associated with these loans, and the shorter terms often provide flexibility for both the lender and the borrower in terms of project timelines or investment strategies.

The other options do not accurately describe hard money lending. Government-backed loans typically provide more security for lenders and lower rates, while loans based on credit scores and income verification are characteristic of standard lending practices. Loans exclusive to agricultural properties are also not a defining feature of hard money lending, as these loans can be extended for various types of real estate.