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Updated 4 months ago on . Most recent reply

User Stats

12
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7
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Taylor Davila
7
Votes |
12
Posts

Hard Money Lender and Down Payment

Taylor Davila
Posted

Do hard money lenders typically require a down payment? If so, what would the percentage be? 

  • Taylor Davila
  • Most Popular Reply

    User Stats

    1,299
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    136
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    Sean Richway
    • Lender
    • Chevy Chase, MD
    136
    Votes |
    1,299
    Posts
    Sean Richway
    • Lender
    • Chevy Chase, MD
    Replied

    @Taylor Davila  Most of it is driven from experience and credit.  There is typically a tiering system that we use as lenders to tier your experience and also look at your credit.  From there that will determine your down payment relative to your total cost of the project.  For example someone with no experience and 700+ credit may qualify for 85% of purchase and 85% of rehab.  Someone with 3 deals or more would qualify for 90% of purchase and 90% of rehab.  Typically a rule of thumb is with no experience and average credit you are looking at 15-20% down depending on the rehab size and complexity.  With 3 deals or more you can typically expect 10-15% down depending on the rehab size and complexity.

    • Sean Richway
    business profile image
    Infinity Capital Finance
    5.0 stars
    4 Reviews

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