What Does Loan to value Ratio Mean on a Hard Money Loan

What Does Loan-to-Value Ratio Mean on a Hard Money Loan?

Published On: August 7th, 2017Last Updated: June 17th, 2024Categories: Hard MoneyTags: ,


If you’re like most people who are buying a home as an investment property, you don’t want to be tied up in a conventional mortgage loan. Typically, hard money loans are the ideal solution for borrowers who want to fix-and-flip properties.

What is Loan-to-Value Ratio?

The amount of money your hard money lender is able to let you borrow is determined by a mathematical formula. It involves the loan amount divided by the value of the property, which is called the loan-to-value ratio.

Some hard money lenders are willing to lend between 65 and 75 percent of a property’s current value, while others lend based on the home’s after-repaired value.

Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?

If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes to learn about the hard money loan process.