Found 100% LTV PLs! Too good to be true? Info and a bit of motivation too.

I made a few connections over the past 4-6 months and connected with PMLs who are still lending at 100% LTV…Just wanted to voice my excitement.

Terms are 30 year amortizations, 4.99% (whatever market rate is), will loan between 50,000-500,000,000. There is no prepayment penalties and no balloons. They require the last 3 years of income tax return and financials. They charge a fee of $3,500 for properties under $500,000 and $5,000 for properties over $500,000 plus 1% of total value. Other than that there are no more points or fees…

To you seasoned professionals: Is this as good as it seems or is there some sort of “catch?” A lot of private investors are becoming private lenders as it provides good returns and its a strong business since a lot of banks are not loaning. And who better to lend money than people who live and breathe investing?

I am not soliciting business in any way nor going against any forum rules… just wanted to share that even in this economic climate, people are loaning 100% LTV for the right applicant and a solid investment potential. This took me 4-6 solid months of networking, but gives us all a little bit more “hope” when you have little to no capital in the beginning phases of your investing career. Perhaps this shows with a lot of networking, and establishing a good relationship with the right people and being at the right place at the right time, the hard work will pay off for you…

A bit of positivity and some motivation for all! :smile

is there a chance that $3,500 fee is non-refundable and paid when you apply,so if you aren’t approved you lose the fee,I don’t mean to be negative, but in this market anyone lending 100% LTV is either your mother or someone you should watch your wallet around,just my opinion

I appreciate it, that’s why I wanted to post this on here as well. I will certainly ask about this next time I speak with this PL.

Usually when it seems to good to be true, it is. So, any other thoughts would be appreciated.

I found an investor here who is transitioning from being a LL to selling off his properties. He’s in his early 60’s and is selling any of his properties we want on owner financing, but he wants 10%. So the interest rate is a little higher than what we’ve been getting, but he will let us in with almost nothing down. So yes, there are things out there.


I would hang on to your hard earned money!!


I stand corrected, Justin is right, you can find a seller with no money down, but I just dont’ see a lender doing no money down and offering 5% for 30 years,

On NOO, agreed

I will bet my 1978 Pinto that there are non-refunded upfront fees.

I’ve lost non-refundable fees and points on a lot smaller LTV amounts from private money lenders. There’s no government agency you can complain to as they are not regulated like banks and you can kiss that money goodbye. From my experience, I’d put money on this being a scam if you have to pay anything upfront. If they’re ok with 100% LTV, tell them to add the fees and points to the mortgage principal and make it 102% or 103%. I bet I know the answer if you say that. So, don’t mind my cynicism when I see ridiculous claims like that…

I like to know what the name of the PL is that is offing 100% of LTV? The only upfront fee should be the appraisal fee which is common. :biggrin