Hard money loans aren't as common as some other types of loans, and many people may be unfamiliar with what a hard money loan is. These loans can be useful in a variety of situations, though. If you're looking for some extra cash, here are several times when you should consider a hard money loan. 

You're Denied for an Unsecured Personal Loan

Hard money loans are a type of loan that's written against a tangible property. Real estate is the tangible property that's used in most cases, but some of these loans might be written against other types of property. Anything that a borrower and lender agree to use as collateral could be suitable.

Since these loans are written against tangible collateral, they're secured loans. A secured loan is simply any loan that's written against some form of collateral. Home mortgages, auto loans, and hard money loans are all different types of secured loans.

Secured loans are distinguished from unsecured loans, which are loans that aren't written against (or secured)  with tangible collateral. Standard personal loans are a common type of unsecured loan.

Lenders consider secured loans to be less risky than unsecured because a secured loan is backed by some type of tangible property. Because secured loans are less risky, you might be able to qualify for a hard money loan even if you don't qualify for an unsecured personal loan.

If you've recently had an unsecured personal loan application denied, ask the lender whether you can get a hard money loan. As long as you have collateral to offer and the lender underwrites hard money loans, the lender will be more likely to approve this type of loan.

You Want a Lower Interest Rate on a Personal Loan

Sometimes borrowers are better off with a hard money loan even if they qualify for an unsecured personal loan. Since hard money loans are less risky, they typically come with lower interest rates than unsecured personal loans offers if all other factors remain the same.

If you've been approved for an unsecured personal loan but would like to pay a slightly lower interest rate, investigate what hard money loan options are available to you. These'll likely save you a little in interest each month, and the cumulative savings can be substantial if you borrow a lot or take out a longer-term loan.

You Need Money Available Quickly

If you need money quickly for an emergency expenditure, a hard money loan can be approved more quickly than other kinds of secured loans. Since these loans aren't subject to the same regulations as mortgages or certain other secured loans, lenders can process the applications faster.