Smart Buyer Loan Program
Montegra has developed a creative way to finance purchases made by buyers who are purchasing an improved-income or multifamily property for less than market value.
With Montegra’s innovative hard money lending program, we are able to do what banks cannot do. If the appraised value of the potential property comes out higher than the purchase contract price, Montegra can elect to use appraised value to determine the loan amount, making it possible to finance up to 80% of the purchase price if the appraised value is high enough.
How does this work?
Here’s an example:
The borrower has a contract to purchase a multifamily property for $1,000,000, but Montegra’s appraiser values the property “as is” at $1,200,000. While a bank will only fund a loan amount equal to no more than 80% loan-to-value (LTV) of the actual purchase price, Montegra uses the appraised value to determine the loan amount and can make loans of up to 70% LTV based on the appraised value. Thus, while the bank will only lend a total of $800,000, Montegra is willing to lend up to $850,000.
This is only an example; each individual loan application is evaluated on its own merit. However, in many situations, Montegra’s creative and flexible approach to private capital lending enables us to fund acquisition loans for higher amounts than banks and institutional lenders can.
Acquisition loans for undeveloped land may be able to qualify for this program on a case-by-case basis. The maximum LTV for these types of purchases is 60% of the appraised value.
As a hard money lender, Montegra has more flexibility in our underwriting process than banks and other traditional lenders do, allowing us to fund loans that they cannot. For more information, contact us today at 303-377-4181.