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.