Hard Money Explanation?
Example
ARV $100,000
Purchase Price $50,000
Hard money
Rate 12.000
Discount Points 4.000
Fees 0
Lock 30
Min. Credit Score 610
Min. D/E 0
Min. LTV 80
Documentation
Updated 2004-12-17
Is LTV of 80% of purchase price or 80% of ARV?
LTV means Loan To Value.
So if the Appraised value is 100,000 then the maximum loan to that value is 80%.
I doubt you would be able to get money over the purchase price however, so you would probably only get a loan for 50,000
Quote:
On 2005-01-21 22:38, fulky wrote:
Example
ARV $100,000
Purchase Price $50,000
Is LTV of 80% of purchase price or 80% of ARV?
It depends upon the lender. As a rule HML will lend up to 80% of the ARV. But not all will.
Some will lend up to 80% of the ARV but will not give you cash. Example they lend you the purchase money plus closing cost. Then as you do repairs they refund your cost after the work is done.
The thing to do is lay out what you want and find a lender who will do that.
Any sugestions on lenders? I have come across several great deal but I am not prepared to act on them so they have been bought by other investors.
Does Hard money loans show on your credit report?
Thanks for all your help!
Trying to get serious :-D