I have a question for Private or Hard money lenders on BP

[Account Closed]

Please any and all advice is greatly appreciated. My question is when dealing with a HML that's offering 85% LTV and I have a property that appraised for 770k very recently under contract around 630k. (85% of its current appraisal value is $654,500) how much of my own money do I need to come up with here? Since the hard asset is worth $115,500 more than I need to borrow would the lender not require me to put up any of my own money or how does that work? I know I'd be responsible for closing costs but with them, how much can I expect to pay out of my own pocket for this deal? I'm unfamiliar in this area and would love someone to shed some light on this subject for me.

[Jason Hirko]

@Account Closed No, because if the loan is up to a) 90% of cost or b) 80% of ARV, it would be up to $567,000 (a) or $616,000 (b). So in essence, the loan can't be higher than either $567k or $616k. Both of those stipulations are ceilings, so both have to be accounted for when determining loan size. So now if you get the contract down to $567k, your max loan amount will also go down to $510,300. There is no escaping at least a 10% down payment based on your lenders requirements. Hope that helps and good luck!