Quote:
Originally Posted by Barry-xlovecam
Maybe, they are equity lending at 65% to 75% LTV.
Hard money lenders make these loans all the time. A bank could make such a loan and season it 24 months then sell the loan and continue to service it.
The APR interest rates are way above market rates on these loans after the points charged when writing the loan.
https://www.google.com/search?q=loan...e+verification |
THAT is the important question .. how much they'll loan and based on what
LTV is based on current FMV, yeah?
So if I want to rehab a garbage hole and I need $5 purchase and $5k to rehab the mess and the value will be $22,500 I can't borrow against the $22,500 - I would be borrowing against the current $5k-$10k current value? Or is FMV meaning the finished value when people talk about that?
I think actual hard money lenders will loan against FMV and they would mean the $22,500 ? ? right ?