Avatar's Blog
» Lending Criteria 101
Let's take a look at the lending criteria listed yesterday:
- Loan Size: $500,000
- Maximum Loan to Value (LTV): 65%
You can extract from the information above that your property purchase price (or appraised value if you are refinancing a property) must be a minimum of $770,000 to meet the minimum loan size of $500,000 at a maximum LTV of 65%. 65% * $770,000 = $500,000.
- Property Type: Improved Commercial and Investment Residential Reals Estate
Improved real estate properties means properties with buildings already on them. This lender does not fund land or construction loans, even if the roads and utilities are already in there. Improved means there is a building - remember your Monopoly game from childhood. When you bought improvements or were assessed on improved properties, it meant the little green and red houses and hotels.
- Proeprty Location: US, including AK, and HI
Pretty clear here - anywhere in the US, not protectorates or other nations
- Serving: individuals, corporations, foreign nationals
Here's an unusual piece. Many lenders do not serve foreign nationals buying property in the US. If you (or your client) fall into this category, Avatar can helpyou obtain properties within the US.
