Regulation
Several states' usury laws, including Tennessee and New Jersey, prevent hard money lenders from charging higher interest rates. Regulation of hard money not only differs by state, it differs by the type of the borrower: business borrower or consumer borrower. Consumers (or owner occupants) generally have additional protections in individual states and also under the Dodd-Frank Act. Some of the most aggressive loan terms are issued by commercial hard money lenders on commercial properties. In addition, the type of property being lent upon may also be a factor in determining if state usury laws allow for legal hard money lending.
Read more about this topic: Hard Money Lender
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