Hard Money Loan to Value Ratios? - Posted by Todd

Posted by IB (NJ) on December 30, 2000 at 23:34:35:

Hi John:

Your terms seem pretty good. Did they start off this way or did you have to establish a track record?

Hard Money Loan to Value Ratios? - Posted by Todd

Posted by Todd on December 28, 2000 at 21:47:26:

I found a great deal now I need financing. What is the best loan to value ratio for a hard money loan? Are hard money loans quicker and easier than conventional loans? Note: My credit is not of the greatest.

Re: Hard Money Loan to Value Ratios? - Posted by JohnB_NJ

Posted by JohnB_NJ on December 30, 2000 at 24:24:34:


My hardmoney lender requires very little. This person is a private person. The LTV required is no greater than 75%. The interest rate is 15% with no points or fees. The deal can close in as little as 3 days if I put a rush on the title work.

My credit is good but my Hardmoney lender has never seen my credit report. The only thing of importance is my track record and the LTV. Of course there is a level of trust. I treat my lender like the goose that laid the golden egg. If I pay this person off early, I throw in an extra months interest to increase the yield to my lender.

Treat your lender well and your business will grow and you will have more lenders wanting you to invest their money.

To your success in the New Year!

John Bittel – NJ

Re: 65% loan to (as-is) FMV - Posted by NJdave

Posted by NJdave on December 29, 2000 at 18:53:29:

Current rates are from 14% to 15% with 4 to 5 points. Most hard money lenders can close within a few days of titlework.

Re: Hard Money Loan to Value Ratios? - Posted by SCook85

Posted by SCook85 on December 29, 2000 at 13:55:57:

Hard money lenders are usually private individuals. The criteria that they lend on is going to be based upon the individual. I’ve heard of lenders that only go 50% LTV, and I’ve heard of people that go 80% LTV. Terms vary by the individual as well.
Most of the lenders that I work with go based off of a 70% LTV. However the appraisal is there own, so if they are uncomfortable with a home, they appraise it low, if they feel comfortable with it they will come in higher.

There are no set rules to what a lender will do. You need to contact them and take it from there.