It happens with regularity to hard money lenders that they will receive an application from someone who wants to purchase a house using hard money for funding purchase and rehab.  However, the borrower will want a higher loan to value than is typically achievable using hard money lenders.  Most hard money lenders target to loan between 65% and 70% of the after-repaired-value (ARV) of a property.  Using these loans to value, the borrower and the hard money lender are both protected.  If you can purchase a property and get your repairs done in one loan for less than 70% of ARV, you are usually going to make money.  Going above that loan to value, puts those profits at risk.  Borrowers should seek to maximize their profits and protect themselves against potential pitfalls on a project by adhering to a loan to value that makes sense to them and their lender.

It happens with regularity to hard money lenders that they will receive an application from someone who wants to purchase a house using hard money for funding purchase and rehab.  However, the borrower will want a higher loan to value than is typically achievable using hard money lenders.  Most hard money lenders target to loan between 65% and 70% of the after-repaired-value (ARV) of a property.  Using these loans to value, the borrower and the hard money lender are both protected.  If you can purchase a property and get your repairs done in one loan for less than 70% of ARV, you are usually going to make money.  Going above that loan to value, puts those profits at risk.  Borrowers should seek to maximize their profits and protect themselves against potential pitfalls on a project by adhering to a loan to value that makes sense to them and their lender.

Onward Financial does not write hard money loans for a person’s primary residence.  However, there are a number of companies out there that do.  If you are looking for a hard money loan on a primary residence, try a sub-prime lender first.  Their rates and terms may actually be better than a “traditional hard money lender”. 

Onward Financial does not write hard money loans for a person’s primary residence.  However, there are a number of companies out there that do.  If you are looking for a hard money loan on a primary residence, try a sub-prime lender first.  Their rates and terms may actually be better than a “traditional hard money lender”.