How much money do you put down when using an HML

[Sean Dezoysa]

What I thought prior: "An HML will fund about 65% LT ARV + repairs" for a fix and flip

What I'm finding
- There are some HMLs that do the above ("100% financing" as they call it) but they tend to charge 3-4 points instead of ~2
- Most HMLs seem to have an additional criteria "Loan to Cost." So if the purchase price is 65k then you need to come up with maybe 10-15% yourself, plus closing costs, or have private money.

Are these the typical terms you guys are working with too?

Does anyone prefer the "100% financing" HMLs even if they tend to charge more points?

[Mark Munson]

Hi @Sean Dezoysa

Aside from some lenders that offer 100% financing (be very cautious of that) up to 70% of the ARV, you should expect anywhere between 85-90% of the purchase price + 100% of the rehab funds, so long as that collective amount doesn't exceed 75% of the ARV. You are going to be responsible for closing costs, financing costs, and the down payment. Feel free to message me if you want me to walk you through a scenario, I'd be happy to help.