Hard money loans are a viable option for real estate investors and homebuyers with poor credit. These loans are backed by real property and are provided by specialized companies. They are ideal for those looking for short-term funding or struggling to qualify for traditional mortgages. However, hard money loans come with high origination fees and interest rates. Borrowers must have equity in their homes and a steady income to be eligible. Other alternatives include home equity lines of credit (HELOCs), home equity loans, and cash-out refinances. Government home loans like FHA, VA, and USDA mortgages are also available for those with lower credit scores and down payment requirements.

Read more at Yahoo Finance: What is a hard money loan, and how does it work?