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.

[Erik Estrada]

Quote from @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

 Yes it exists, but is just part of the qualifications for a hard money loan. 

There are many lenders that can do up to 75% ARV. I am seeing some lend up to 80% for purchase, 90% LTC, and 100% financing for the repairs

[Kevin Woodard]

Yes there are hard money lender that will lend up to 75% ARV and will finance the entire deal to include closing costs.

The term is typically limited to 6 months and you will have to extend if you can’t exit within this time line. Just some food for thought.

What market are you in?

[Eliott Elias]

Yes, just have to wait 6 months 

[Layton Martin]

Quote from @Kevin Woodard:

Yes there are hard money lender that will lend up to 75% ARV and will finance the entire deal to include closing costs.

The term is typically limited to 6 months and you will have to extend if you can’t exit within this time line. Just some food for thought.

What market are you in?

 Do you know of any personally that do that ? Would love to connect with them if so 

[Doug Smith]

In Tampa here as well. Perhaps you can share more about your project. Most lenders, including us, consider both ARV and Cost. How aggressive we get depends on several factors including experience of the operator. For instance, a customer might be doing a ground-up spec build and we might say "Lesser of 80% of cost or 70% of ARV". It really depends, so I think to give an accurate answer, we (or at least I) would need more info. Thanks so much.

[Jorge Vazquez]

Hi Emilio,

In my 20 years of experience as a real estate broker, investor, and owner of an MLO brokerage and property management company, I can tell you that there are financing options available that might suit your needs. For new investors, you can secure up to 90% of the ARV, and for seasoned investors, there are even opportunities for up to 100% financing, depending on the lender and the specifics of the deal.

If you need any assistance or have more questions, I'm here to help. Feel free to reach out!

Best regards,
Jorge Vazquez