Question:

Why are hard money high LTV loans so hard to get?

Answer:

Has it happened to you yet, to have a broker or lender tell you they approve of your hard money high LTV loan only to back off a couple weeks later? Funding for hard money high LTV loans is not so easy to get these days. With the market being so volatile, with underwriting guidelines changing every day, an investor can't be so sure they would find exactly the loan they need.

Hard money loans with LTV higher than 85% can be particularly difficult to find, even though they were available half a year earlier. If you are looking for hard money 90% or 100% LTV loans, you might get stuck for a long time.

How about hard money high LTV loans in California?

The commercial loans offered in California right now generally come with up to 30 years amortization schedule, no prepayment penalty and 75% LTV.

Due to the turmoil in the real estate market in the U.S. Especially, hard money lenders in California, Nevada, Arizona and Florida may be pretty tough on lending requirements or not interested in your property at all. Good to know, commercial and income-generating properties are preferred to residential real estate, as they are easier to appraise.

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