Need HML loan fast

Will a Hard Money Lender loan money to rehab a property while there is a construction loan in place?

The construction loan/mortgage is for $500k and I need an additional $75k to finish the project, keep up mortgage pymts and sell the condos. Is there any way a HML will loan in this situation.

I need the some advice badly.

thank you

The general answer to your question is yes. It depends on where the 500 + 75 puts you for LTV. If you are in the 70% range, then yes a HML can help.

Steve Perruzza

Do you think a cash out refinance would be another option that could work?

What equity do you have to take cash out of?

The ARV of the 3 seperate units will be roughly $750k. I believe the appraisal of the property with the current renovations will be around $600k.

I was thinking if the bank would do somewhat of a “blend” appraisal it would appraise around $650k. Based on that, I could refi with a 90% LTV and get the $75k I need.

Does that make sense? Let me know what you think.


Don’t go to a HML for a 90% loan

because all they will do, is ask you to meet them for a beer after work so you can tell them how you got the $…

If you can pull some more cash into the deal you can pick up your loan…a guy earlier mentioned 70%…just rember to add your loan costs and closing fees if they are going to be rolled into the loan

good luck

There are some HMLs that actually use their own funds. Always use a DIRECT HML.



I am a little confused by your reponses. I was reffering to a 90% LTV if I was to refi with cash out but the problem with that is the appraisal.

I know if I go with the HML they won’t go much above 75% LTV but they will base the appraisal on the ARV of the 3 units.

any suggestions?


LTV to HMLs is like credit score is to ILs. Sorry if I was confusing things, but it appeared that you were shooting for a hard money loan.

If I understand correctly, you got:

600k appraised
750k ARV

500K debt + 75K to get your ARV

If you can talk a construction HML to give you 70% on a 2nd then I want to shake your hand…so you are looking at a first of 575K + costs…that’s going to put you outside the LTV box regardless of how you name it… Even if you put the 75K into it yourself, you are still going to be white knuckling it for the appraisal to meet your expectations…sounds really tight…

so how to get from here to there…
1.If you can get 80% conventional, then you don’t need HM
2. Do you have other property? Why not cross-collateralize. Pool it together. Pun intended.
3. Bring some more money into the deal to cover the funding shortfall from the HML.

Wish you the best of luck in your venture!