LTV Lenders in Cedar Rapids Area

9 Replies

Hello BP community!! Is anyone aware of a lender in the Linn County or Johnson County areas that will lend based on appraised value (LTV) rather than on cost (LTC)?

@Doug Karkow

Hey Doug,

I use Hills Bank quite a bit and have been very happy with them. They'll typically loan on the lesser of the two but their LTV requirements are a bit more favorable than some other banks in the area. I've only used their commercial loans though so I'm not sure about their other products.

If you're going to be making improvements to the property after you purchase it to increase the property value, I've used Bank Iowa out of Independence several times for loans like that. They've loaned me up to 80% of the finished appraised value. I know they also have a branch in Cedar Rapids. I'd be happy to connect you with the commercial banker I've used. 

@Daniel Zwick Hi Daniel, thanks for your feedback! I have used Hills Bank commercial loans as well, but like you said, I believe they lend based on cost (purchase price plus rehab) rather than an as-improved value. I'll keep these types of lenders in my back pocket in case I can't find any that will do a loan based on appraised value.

I use CBI Bank and Trust out of Coralville.  The commercial lenders there understand investing and are more flexible than most other banks I've worked with.  If you need a contact name let me know.

@Doug Karkow I use Hills Bank. They are commercial loans but they will lend based on after repaired value. I typically provide a list of repairs and how much I estimate it to cost which gets passed on to the appraiser. I am then allowed to borrow 80% of that number.