What is a common characteristic of a hard money loan?

A common characteristic of a hard money loan is that it is secured by real estate. Hard money loans are typically short-term loans provided by private investors or companies, using real estate as collateral. This means that if the borrower defaults on the loan, the lender can seize the property to recover their investment.

The focus on real estate collateral allows lenders to bypass the stringent qualification processes typically associated with traditional bank loans, which often assess the borrower's creditworthiness and income stability. This characteristic makes hard money loans a popular choice among real estate investors and borrowers looking for quick access to capital, particularly when traditional financing isn't available or feasible.

The other options provided do not accurately describe hard money loans. For example, these loans are not typically issued by traditional banks, nor are they known for flexible repayment terms when compared to more conventional loans. Additionally, hard money loans are generally not intended for long-term homeownership, as they are structured to be short-term financing solutions.