Real Estate Investor · Richmond, VA · Member since 2013 · 15 posts · 2 votes
I was wondering when a hml lender say that they can loan 70% LTV does that mean that if a property is worth or have an ARV of 75,000 that they would loan $52,500 on the property even if the purchase price is $30,000. If so can the rest of the loan cover the repair cost?
Rashad Roane every lender is different on what they will loan, and how much and for what they will finance. How much are the anticipated repairs going to be? What is the ARV based on? (your opinion, comps, appraisal, etc.) If your numbers are accurate, you should be able to find someone that will do the deal. Good luck!
As for the deposit, it depends on how motivated the seller is, how many others are making offers, etc. Are you using an agent? If so, ask them what they think. They know your local market, and the property in question, and can give you insight we can't.