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Purchase Contract At Under Fair Market Value Loans

Montegra offers a unique program for borrowers who have a contract to purchase a property at less than its fair market value. Unlike banks and institutional lenders, we are willing to use the higher of appraised value or purchase price underwriting your loan request.

The advantage to a borrower is obvious. If you have a contract to buy a property for $750,000 that will appraise at $1,000,000, we are willing to use the $1,000,000 value. Thus we will be able to loan you (assuming it is an income property) 65% of $1,000,000 or $650,000. A more traditional lender might offer a loan of 75% of purchase price or $562,500. Montegra will reward you for making good buy!

We do require that borrowers invest at least 15.00% of the purchase price in cash on income property loans and 20% of the purchase price of the property on land loans. In certain select cases this policy may be modified in return for an upward adjustment in pricing. As in all of our other hard money loans, we require that we approve and hire the appraiser that is used to value the property.

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