Hard money loans, which got an unsavory reputation during the housing crisis, are being rehabbed for buyers of high-end fixer-uppers.

A hard money loan differs from a mortgage in that the loan amount is based on the anticipated sales price of the home after improvement costs. Terms are short (typically just 12 months), interest rates are much higher and the loan is backed only by the hard asset, the residential property. Terms are short (typically just 12 months), interest rates are much higher and the loan is backed only by the hard asset, the residential property.

Once associated with the financial crisis, these loans are shedding their negative reputation and are now attracting wealthy investors.