Got a house under contract, Hard money lender pulled out.

[Kodi Floyd]

I recently got a home under contract, old beat up 3 bed 2 bath in a neighborhood that generates homes around the 90k area. I got it for $14,500. An LLC bought it for $1 from the previous owner that pretty much had squatters in it. So The LLC was just trying to dump it. New roof and a company is coming in to install a radon mitigation system so the basement is getting a vapor barrier installed all before I even close on the house. other than that we are looking at about a 50k rehab, ARV is at 90k. My problem is that my hard money lender just pulled out on me for the reasoning that I purchased the house for too cheap and the underwriters don't like it. First, Is this an actual excuse and two, does anyone have any recommendations for hard money lenders that typically deal with the smaller loans of around 65k in PA? Closing is in 3 weeks.

[Doran Summers]

With the arv being $90,000 it would be over most lenders after repair value.

Even if they did 70% arv based on $90,000 the max they could loan is $63,000.

So you would need to put down 15% to 20% of loan to cost.

I’m not sure if you used BiggerPockets calculator or used another program but how much profit you would have after putting down 20%?