hard money loans Archives

Understanding Loan-to-Value (LTV) Ratio

By Web Techs on December 3, 2025 / hard money loans

What is the Loan-to-Value (LTV) Ratio and Why Does It Matter for Getting a Loan?

Lenders need a quick and accurate way to figure out how risky a loan is when you apply for one, whether it’s a personal loan, an auto loan, or a title loan. The Loan-to-Value (LTV) ratio is one of the most essential instruments they have. If you want to borrow money against your car or another asset, knowing about LTV can help you figure out what to expect, what you can receive, and how to secure the best deal.

What Is LTV, Exactly?

The Loan-to-Value Ratio (LTV) is a statistic that shows how much you want to borrow compared to the value of the asset you want to borrow against. It is written as a percentage:

LTV = (Loan Amount ÷ Appraised Value of Asset) × 100

The LTV is 50% if you borrow $4,000 on a car that is worth $8,000. The lender can see how much of the asset’s value is being used as collateral.

Why LTV Is So Important

LTV is very important to lenders since it tells them how risky a loan is.

Less LTV means less risk.
The lender has a lot of protection when the loan amount is minimal relative to the value of the asset. This usually implies that you can get your loan approved sooner, get a better interest rate, or borrow more money.

More LTV means more risk.
The lender is less protected if the asset loses value or needs to be sold if the loan amount is close to the asset’s worth. People that borrow money with high LTV ratios may have to meet tougher standards, pay higher interest rates, or get less money.

At BradLoans.com, we do our best to look at each application on its own, but LTV is still one of the most important things that decides how much you can borrow.

How LTV Changes Auto and Title Loans

LTV is very important for auto-title loans because your car is the collateral. A lender looks at the make, model, year, mileage, and overall condition of your car to figure out how much it is worth. After that value is known, the LTV rules are used to figure out how much the loan will be.

Most title lenders will grant you money in the 40% to 70% LTV range, depending on how good the car is and how much money you have. A automobile that is well-kept and has minimal mileage can typically get the higher end of the spectrum.

How to Make Your LTV Ratio Better

Here are some useful tips to help you get approved or get a bigger loan:

Keep your car in good shape to keep its worth.

Make modest fixes or upgrades that make things look or work better.

Bring comprehensive and precise paperwork so the appraiser can check the worth.

Think about borrowing less, which will lower your LTV right now.

Even tiny changes can change your ratio enough to get you better loan conditions.

The Bottom Line

The Loan-to-Value ratio is one of the most crucial numbers on any application for a secured loan. You may borrow money with more confidence and responsibility if you know how LTV works and how lenders use it. At BradLoans.com, we promise to be honest about lending, make things straightforward, and help our customers acquire the money they need without any uncertainty.

Start your safe online application today if you want to find out what kind of loan you can get.

Brad Loans Offers Up To 100% LTV With Cross Collateral

Brad Loans offers 100% FINANCING if borrower has an another property that is free and clear or the property that has positive equity (it’s worth more than is still owed), it can be pledged as additional collateral (aka a Cross Collateralized Loan). Learn more about 100% LTV hard money loans here.

Finding the Right Hard Money Lender for Your Primary Residence

By craig braddick on November 30, 2025 / Finding the Right Hard Money Lender for Your Primary Residence, Flipping Houses In Arizona, hard money loan approval, hard money loan requirements, hard money loans, Investment Property Loans

Finding a hard money lender that is a good fit for your home is like searching for a soulmate. You should look into many loan providers to choose the one that is most suited to your situation. Find the best lender for your needs by comparing their fees and interest rates. You can get the financing you need to purchase your ideal house if you go to the correct lender.

Doing Research on Hard Money Lenders and Making an Evaluation

Read reviews and look at their websites to get a feel for what people think of them. When looking for a loan, it’s important to evaluate their costs and interest rates. If you put in the time and effort, you may locate a reliable lender who will work with you to purchase the house of your dreams.

Think About Their Standing, Background, and Success Rate

Similar to picking a sports team, it’s wise to research the background, expertise, and performance of potential hard money lenders. Ask around to see if they have a solid reputation among their previous customers. Find out if they’ve assisted other people in purchasing properties. With these factors in mind, you should have no trouble locating a reliable mortgage lender.

Evaluate Different Fees and Interest Rates

Take a look at the total cost of the loan, including interest and any additional fees the lender may impose. You can locate the most cost-effective house loan alternative by evaluating these expenses offered by different lenders.

Loan Agreement Reading and Comprehending

Loan agreements are similar to reading the rules of a new board game before you play. Peruse the loan agreement thoroughly. Verify that you fully grasp all of the lender’s stated terms and conditions. This way, there will be no unpleasant surprises down the road because you will have fully understood what you are consenting to.

How to Work with a Hard Money Lender for a Smooth Deal

Working with a hard money lender is like entering a competitive game: you want to come out on top. Get your needs and situation out to the lender straight and honest first. Stay in touch and don’t be afraid to ask questions if you have any doubts. You can accomplish your objective of purchasing your dream home by adhering to these suggestions and maintaining organization during the transaction with your hard money lender.

Achieving Reasonable Goals

You need to be honest with yourself about your abilities when you set reasonable expectations, much like when you plan a vacation with friends. Realize that there is a process involved in obtaining a loan and that there may be obstacles to overcome. Be flexible and ready to deal with setbacks; perfection is unrealistic. If you want to secure a house loan, being realistic will help you stay positive and focused.

Clear and Effective Communication with the Lender

Make sure the lender understands what you need by communicating effectively with them, just like you would with a teacher discussing an assignment. Tell the truth about your worries and current financial condition. If something is unclear or doesn’t feel right, don’t be shy about asking inquiries.

Having a Well-Planned Way Out

It is prudent to have a well-thought-out plan B ready in the event that your A-game doesn’t pan out. Prepare for the worst-case scenario by considering your options, such as how you will handle the loan repayment. Think about your options, such selling the property or looking into refinancing the debt. Feeling secure and ready for anything that may come your way during the loan process is possible with a well-thought-out plan.

Comprehending the Repayment Agreement

Knowing the rules of a game before you play it helps you prevent surprises later on, just like understanding repayment terms and conditions. Read the terms carefully to familiarize yourself with the amount you must repay, the due date for installments, and any fees associated with late payments. Ask the lender to clarify anything you don’t understand. You can keep on top of your payments and prevent additional costs or problems in the future by comprehending these terms.

Summary

Considering the advantages of hard money lenders is like going back to the reason we enjoy playing our favorite game: it’s exciting and entertaining! When time is of the essence, hard money lenders can provide a solution that standard banks just can’t match. They make it easier for consumers to buy homes by caring more about the property’s value than your credit score. More choices for getting the money you need to buy a house are available to you when you work with hard money lenders.

If you’re interested in getting involved with real estate investing and need the capital to purchase properties hard money is a great way to get started. Brad Loans has extensive experience in both real estate investing and hard money lending and is proud to offer Phoenix Valley real estate investors the financing they need. It is easy to get started applying for hard money loan and Brad Loans is able to work with clients with bad credit and no credit. We are your source for hard money when traditional banks say no. Read more about Brad Loan’s hard money loan programs or get started fill out our hard money loan application or give us a call to ask questions at 602-999-9499.

When You Cannot Repay Your Hard Money Loan

By craig braddick on October 20, 2025 / hard money loans, When You Cannot Repay Your Hard Money Loan

What is a Hard Money Loan?

Hard money lending is frequently an excellent solution for real estate investors who are in need of cash in a hurry and who possess a wide range of terms and payment schedules to choose from. Despite the fact that many lenders are aware of the individual circumstances of borrowers, they are also required to safeguard their investments. This necessitates taking appropriate action in the event that a borrower fails to repay an outstanding loan. Before you take out a loan using hard money, you need to be sure that you have a complete understanding of the terms and circumstances of the loan.

Reasons for the Default

Because of the short-term nature of a hard money loan, the lender may only need to receive a single missed payment in order to consider the loan to be past due. This is because the debt is considered to be in arrears.

Failure to Make the Balloon Payment

Almost all hard money loans come with a balloon payment that is scheduled to be made at the conclusion of the arrangement. This payment is significantly greater than the individual monthly payments that are due. In most cases, the borrower is able to make this payment since the investment property has been sold; nevertheless, if they are unable to do so for any reason, the lender may foreclose on the property.

Changing Conditions

Depending on the terms that the loan was initially established with, different financial conditions on the side of the borrower may be sufficient to convince the lender that they need to call the loan due immediately, rather than later. This is because the loan was initially established with certain terms. This procedure is not as arbitrary as it may appear, but if the loan is paid off legally and you are unable to make payments, it may be a reason for you to default on the loan.

Deterioration

If the condition of the investment property deteriorates to a level that is below a threshold that is considered acceptable, the lender may foreclose on the property or ask for an advance of funds.

Illegal Transfer

Within the terms of certain contracts, the borrower is required to maintain ownership of the property in his name. In addition to the potential for certain fines, the loan could be considered defaulted upon if the property is transferred without authorization.

What Happens if I Do Not Pay Back My Loan Obligation?

It is possible that the typical lender will opt to call the loan sooner than the typical traditional lender would do due to the shortened nature of hard money loans; nevertheless, there are still a few processes that must be taken before the transaction is completely closed off.

To begin, if the borrower fails to make payments or defaults on the loan, the lender may decide to significantly raise the interest rate on the loan; in rare instances, the rate may even be increased by a factor of two. The interest rates for hard money loans are significantly higher than those on average loans; they often start at 12% and continue to grow from there. If the borrower defaults on the loan, the interest rate can increase to 25-30% or even higher. Although a payment of $1500 can grow up to $3000 or even more, it is extremely difficult for the borrower to bring the account up to date if the payment is that high. In the event that it continues to be in default, the lender may decide to take more extreme enforcement actions.

When a borrower is unable to pay a bill that has been called due, this might result in the foreclosure of the property. If this occurs, the borrower will most likely make the decision to sell the collateral and keep all of the payments that are currently being made as a penalty for defaulting on the loan. In the event that the borrower is getting close to the conclusion of the loan’s term, this could result in the loss of several thousand dollars. It is not uncommon for hard money lenders to choose not to report a default to credit bureaus due to the high expense of doing so; nevertheless, they may choose to do so in certain circumstances.

A “deed in lieu of foreclosure” transaction is yet another alternative that the borrower can pursue. In the event that the lender agrees, the borrower has the option of returning the property to the lender rather than having a foreclosure act recorded on their credit history. It is possible that the borrower’s ability to obtain a conventional loan in the future may be negatively impacted by an excessive number of foreclosures; nevertheless, borrow money from another hard money lender may be an alternative. Should the borrower choose to pursue a deed in lieu of foreclosure, it is imperative that they obtain a release from the lender. Failure to do so may result in the borrower being responsible for both the debt and the property.

Hard Money Lenders in Phoenix, AZ

When you are searching for hard money loans near me in Phoenix, Scottsdale, Glendale, Tempe, Mesa, Chandler, or Gilbert, Arizona; Brad Loans is Arizona’s most trusted direct hard money lender! We specialize in hard money loans for Fix and Flip, refinancing mortgages with bad credit, business loans secured by real estate, real estate purchases, short sales, and other endeavors with quick turnaround in the Phoenix Valley.

BradLoans.com is the most trusted direct hard money lender and private money lender in Arizona! We are the best hard money lender in Arizona with the ability to fund commercial & residential hard money loans many times within a couple of days or less. Our lending rates and fees are reasonable compared to other Arizona hard money brokers or mortgage brokers in Arizona.

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