For those of you who are scratching their heads and wondering what LTV means, let’s spell it out as plainly as possible. LTV is loan-to-value ratio and it’s calculated by taking the size of the loan and dividing it by the property’s value. For instance, if the appraised value of the property in question is $100,000 and the loan amount is $75,000, you have a loan-to-value ratio of 75. If you’re buying a home, the LTV is based on the home’s sale price, except in cases where it’s appraised for less than the sale price.
Lenders use LTV calculations as one of the factors in determining eligibility for a loan. Typically, lenders want a low loan-to-value ratio because it means there’s less risk involved. Many banks and credit unions set an unmovable upper limit for LTV — if it’s above, say, 80, they won’t even consider it.
However, there are some places that will go up to 100 LTV. VA loans are backed by the U.S. Department of Veterans Affairs and USDA loans are guaranteed by the U.S. Department of Agriculture, so those are two ways to get a 100 LTV loan. By the same token, FHA loans can do up to 96.5 percent because they are insured by the Federal Housing Administration.
In addition to the above sources, some Arizona Hard Money Lenders are willing to do 100 LTV loans. This is because the money comes from private sources and borrowers generally put up collateral to secure the loan. Arizona Hard Money Lenders can also be more flexible and get you funding faster than a bank or credit union, so many people prefer this type of loan.
Finding a lender who will do 100 LTV Arizona Hard Money Loans can seem like finding a mythical bigfoot in the woods. But don’t worry, they do exist and it’s not as hard as you may think to find one. Here at Setabay, we sit down and chat with potential borrowers and take into account their dreams, desires, and individual situation to determine if it’s a good fit for both of us. If you’re interested, give us a call today!
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.