Posted by GMann on September 18, 2004 at 23:13:21:
They are lending based on the comps. That’s how you determine what the value of the property is. They just won’t lend on more than 70% of the value. You are going to have problems financing properties that need rehab AND you need to borrow more than 70% of the after repair value (subject-to appraisal).
There are higher loan to values (90-100%) widely available if the property doesn’t need work(minor cosmetic only)…>90% requires good credit.
advice - Posted by Steve
Posted by Steve on September 18, 2004 at 14:49:44:
Looking for advice on how to go about purchasing distressed properties, foreclosures or pre-foreclosures.
I need to find a lender that will lend based on comps in the area not the LTV. I am only finding lenders that will lend up to 70% LTV.
Any help or advice would be appreciated. I live in Northern CA.
Steve
Re: advice - Posted by James Strange
Posted by James Strange on September 19, 2004 at 11:31:34:
Most lenders define LTV as the lower of apraised value or purchase price. So yes they are looking at comps.
To find a lender who will only look at the FMV and not the purchase price usually requires the use of a hard money lender.