Lender/Private Lenders

[Connie Covert]

Are there any lenders who will lend on the actual "real estate" in lieu of money down? 

Basically, loan on "asset based"?

[Matt Taylor]

Connie,

Hard money lenders and private lenders are "asset-based lenders", in that they rely on the value of the asset (the property) rather than your credit rating and financial situation to give their investment a margin of safety.

But these lenders typically lend less than 100% of the value of the asset (the property). I don't lend in your state and I am not familiar with lending practices there, but my maximum loan to value (LTV) ratio is 65% in New Hampshire. The purpose of this is to protect the lender. If the borrower does not pay and the lender has to foreclose, then the lender wants to be able to recover the lost interest payments, the loan principal, accumulated property taxes, property insurance premiums, utility bills and the legal and other costs associated with the foreclosure process.