Campusqueretaro.net

https://campusqueretaro.net/
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Hard money lenders are free to set their own LTVs as they see fit. There is no ‘typical’ LTV. The general rule of thumb for investors is to plan on 50%. If an investor can find a lender with a higher LTV, it is considered a bonus. Sticking with 50% is the easiest way to ensure a borrower will have enough for a down payment. Both parties only put in half. The LTV is a tool designed to protect lenders. Retail banks and credit unions utilize LTVs all the time. So do hard money lenders. It is a tool that forces borrowers to put some of their own money into the deal. Otherwise, they risk nothing. That means they have less incentive to make good on their loans.