Hard Money 60% ARV

[David D.]

When a hard money lender says they lend 60% of the ARV but want to see 20% down payment, what does that mean exactly?
Does that mean they want to see the borrower come in with 20% of the purchase price as a down payment, then the borrower also has to come up with the rehab costs?

[Tyler McCracken]

Really it depends on the lender.... Typically the hard-money lender will advance rehab money as work is completed. Therefore only 20% down on the purchase price + closing costs not rolled into the loan at close would come from the borrower.

I would recommend getting clarification from the lender you intend to use.