Update Hard Money Guidance

We have surveyed a number of lenders to find out which are still lending.. Below are some updated guidelines for most lenders.

  • Max LTV for purchase & refinance bridge loans: 65%
  • Max LTP (loan-to-purchase) for fix & flip: 80%
    • Must have 20-40% down payment
  • Max LTC (loan-to-cost) for rehab projects: still 100% for most lenders
  • Max LTARV (loan-to-after-repair value): 65%
  • Max LTC for ground-up construction projects: 75%
  • Minimum FICO Score: 640
    • Many lenders are only considering borrowers with good credit
  • Must have sufficient liquidity – meaning lots of cash in the bank
  • Some lenders are requiring 3-12 months of interest payment in advance
  • No Newbie Investors – for rehab projects, the borrower must have a lot of experience

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