Avatar's Blog
» Residential Hard Money in WA & CA
By far, the most frequent request for hard money loans is for owner occupied residential properties. Avatar Financial Group funds owner occupied real estate in the states of Washington and California if the property is purchased for more than $770,000. Oour minimum loan is $500,000 based on 65% LTV. LTV means loan to value.
For purchases of residential property, "value" is defined as today's purchase price - aka today's street value. For refinancing of properties owned for more than a year, "value" is defined as Avatar's opinion of the appraised value of the property.
Avatar, like all hard money lenders, will send their own appraiser to the property to review previous appraisals and make an opinion about the current 'quick sale' value of the property. In the event of default, the lender must sell the property quickly. The value of the property will be set at the sum that it will fetch on the open market in a short period of time.
