Avatar's Blog

» Understanding Lending Criteria

Posted on 3/6/2005

Avatar Financial Group fields over 200 loan requests per week. Most requests do not meet Avatar's lending criteria. Whether we can fund or not, we try our best to steer borrowers and brokers in the right direction to find a lender who can fund their specific type of project.

Here is the lending criteria for Avatar Financial Group:

  • Our minimum loan is $500,000
  • The maximum LTV (loan to value) is 65%
  • This means that the minimum vlaue for a property must be $770,00 to yield the minimum $500,000 loan amount.
  • If you are purchasing a property, "value" is equal to the lesser of the purchase price or Avatar's opinion of the appraised value.
  • If you are refinancing a property, "value" is equal to Avatar's opinion of the appraised value.
  • "Avatar's opinion of the appraised value" means that Avatar will order the appraisal from a local, respected appraiser and the appraisal will be made to Avatar Financial Group. Do not order an appraisal yourself - you will only have to pay twice, as hard money lenders must order their own.

For questions about lending criteria, email: gillian@avatarfinancial.com

 

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