Is there 75% ARV lending?

[Emilio Pereira]

Having a hard time finding a lender who lends on 75% of the ARV. Most do LTV. Do hard money loans not really exist much that lend based on the ARV? Please let me know any help would be helpful

[Ryan Stuckey]

The ARV % serves as a secondary calculation (i.e. constraint) on the maximum loan amount for a rehab project. The primary calculation is based on X% of purchase price (depending on lender policy and borrower credit/experience) + 100% of rehab (normally). This primary calculation guides the loan amount but then the secondary calculation based on ARV % kicks in. In other words, it could reduce the max loan amount if the deal is too thin (not enough profit) for the lender's risk appetite. Some more conservative lenders may only use 65-70% ARV on the secondary calc.