subject: How Do Mortgage Loans for Bad Credit Work? [print this page] Hard money loans are very expensive and intended as interim financing while borrowers rebuild or establish credit. Borrowers should strive to refinance mortgages as soon as possible. Most hard money lenders require a 50-percent down payment and charge interest rates as high as 23-percent. Hard money loans are subject to state usury laws which limit the amount of interest a private lender can charge.
