Loan-to Value Ratio (LTV): a comparison between the value of your loan amount and the estimated value of your property. To determine a loan’s loan-to-value, the lender will take your desire loan amount and divide it by the value of your commercial real estate . Hard money lenders sometimes require two opinions of value to ensure they’re making a good financial decision to fund the loan. Lenders can get their values from appraisals, broker’s price opinions (BPO) or tax appraisal value.
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Commercial Hard Money Lender vs Traditional Lenders
How Commercial Hard Money Loans Differ From Traditional Loans. Commercial hard money lenders vs Traditional lenders offer a way for people to receive a loan that do not have strong credit scores or financials. Hard money loans are secured by real estate. Many people who are buying real estate use non traditional lenders to help […]