We have recently become a referral agent for lenders that will provide 100% CLTV. What does that mean. For residential real estate, we can lend up to 60% of the LTV. This means that the seller will carry the remaining 40%. For commercial (including multifamily of +5 units), We can go to 55%. Note, these are general guides, and can vary based on property type, and other factors.
For all intents and purposes, this can allow you to (almost) buy a property with “no out of pocket costs.” Why “almost?”
- You will need to provide a clean title.
- You will need an appraisal.
- We have a doc fee, which is what the legal department charges, to draw up the documents.
- Closing costs.
If you have a clean title, and an appraisal (between 3 – 9 months, case by case), then you will only need pay the legal fee to close the deal, and closing costs. Note, in your negotiations, you can ask the seller to pay closing costs, aka, seller credit.
Hard Money Loan (HML)
Since this is hard money, as part of your negotiations, you can offer to pay the seller the rest when you refi the property, which can be in as little as 6 months, or as many as 36 months. Note that with the 100% CLTV HML, you can do fix & flips (light to medium), but not full rehabs (including gut jobs), ground up construction, or raw land.
Interest is higher than “conforming loans,” like bank loans, as are most other Hard Money.