A Hard Money Loan is a Bridge Loan which is a short-term loan secured by real estate. This type of loan is used to finance a property until permanent financing is found, the home is resold, or the home is rehabilitated and then resold.
They are funded by private investors (or a fund of investors) as opposed to conventional lenders such as banks or credit unions. The terms are usually around 12 months. The loan requires monthly payments of only interest or interest and some principal with a balloon payment at the end of the term.