ARV Loans

I am looking into ARV Loans (After Repair Value) Loans. What typically are the iterest rates for these types of loans. Also, what are gerneral terms with these loans. Do they usually come with a balloon after 3-5 years. Or are they set up like traditional loans over a 30 year time line? Looking for people who have some experiences with this kind of loan.



For a ARV loan I use a hard money lender, he does 65%-75% of the ARV, no prepayment penalty, interest only (he also has deferred payment), the rate is 12%-15%, 4-6points,for up to one year, you can do a one year extention for a price. Most of the rehab loans will lokk something like this, banks will usually not go here.
Good luck!

Get out of hard money deals. The points & rates are costly and there are cheaper ways to get those deals done through unsecured commercial lines and no appraisal financing.

With all due respect your analysis on HMLs is flawed. HML loan basewd on the ARV of the property NOT the as is. On a property currently worth $60k needing $10k in rehab with an ARV of $100k a tradititon lender will only lend based on AS-IS… In this scenerio the HML would lend 100% of purchase price AND rehab the tranditonl lender would lend up to 90% -100% of current appraised value only.

As for unsecured commercial lines and no appraisal financing. Never seen one. I have to personally sign on all of my loans. Only IBM gand other publically traded companies get loans without an officer personally guaranteeing the llaon. Anyone that loans without and appraisal is probably not someone you want to do business with. (aka Guido and the boys)

Good luck!


Can you explain using some numbers how the intrests only and deferred payment and points work? (Example of how it works)

I don’t know too much about this side of things. I would certainly apprciate it.



I think what he meant about the unsecured commercial lines of credit was to find some people with good credit…partner up…form an LLC and apply for an unsecured business line of credit through maybe capital one?? I just talked to one of my investors Friday and he said his LLC has 130k in unsecured business lines of credit at an interest rate of 8.5%. Many investors overlook this option and I think they should really research it a bit more.

In response to the DHLC & the concerned investor. I understand that ARV/Rehab/HML lenders have their niche in this business. At times, I also use these sources at my mortgage company for all of my investors. However. Above I referenced the option of no appraisal financing. Before blurting out a remark that is completely false, check your resources or inquire about my statement. DHLC aside, there is such thing as a no appraisal purchase or refi. I do it all the time, for the investors looking to save thousands of dollars in hard money fees. You can accomplish the same goal using unsecured commercial lines through my office packaged with a no appraisal AVM value. This option is conducted through some very large banks, even lenders mentioned in this forum. You only have to close on the commercial lines “1-time!” And you can keep using them over and over. This is your source of rehab capital. The other funds used for the aquisition of the property is conventional money that your not going to pay 5-10 points + closing fees for.


Just for informational purposes what kind of rates are you selling on these unsecured lines of credit; as well as no appraisal financing? Also for informational purposes what type of lenders offer no appraisal financing. I like to think of myself as a seasoned professional. I spend a lot of time reading and researching new programs to keep myself competitive in the marketplace, but I have never seen products like those that you offer in your portfolio. Are you using AVM’s to find value? There has to be an angle…

The residential & commercial programs are both offered at conventional rates. In some areas on the commercial line as low as prime+0. The AVM deals are conventional rates. The programs are available FD & Stated.