Which lending cap binds on your deal?

Loan to cost, loan to as-is value and loan to ARV, applied at once - the smallest one decides your loan.

Your deal

Purchase price$

Rehab budget$

As-is value$What it is worth today, before any work.

After-repair value (ARV)$

The lender's caps

These are the four numbers on a term sheet. Every lender applies all of them at once and the smallest answer wins - which is why the leverage you were quoted is often not the leverage you get.

Max % of purchase price%

Max % of rehab budget%

Max % of as-is value%

Max % of ARV (total debt)%

Which lending cap binds on your deal? by Hard Money Facts — independent research on hard money and private real estate lending. Free to embed. Nothing you type here is transmitted anywhere.