Avatar's Blog
» LTV - How high can it go?
In general, Avatar Financial Group and other hard money lenders can lend up to 65% LTV on income producing commercial properties
For raw land, expect the LTV maximums to hover around 50% LTV.
If you are putting down a substantial percentage of the cost of the real estate, such as 30% in cash, you may find that some hard money lenders, Avatar included, may have a little wiggle room on that 65% max LTV.
Bear in mind that LTV, while it stands for loan-to-value and refers to the mathematical equation describing the relationship between the loan amount requested and the value of the property, is actually a mis-nomer in some ways. If you are purchasing property, 'value' is not equal to the appraised value, but to the actual purchase price, also known as 'today's street value.'
