Hard money lenders are conservative on LTV compared to conventional mortgage programs — because the loan is primarily secured by the asset and the lender needs sufficient equity cushion to recover their capital in a default scenario.

Typical LTV Ranges

• Purchase transactions: 65%–75% of as-is property value
• Refinance transactions: 60%–70% of as-is value
• Fix and flip (based on ARV): Up to 65%–70% of after-repair value
• Commercial or land: Generally lower — 50%–60%

Why LTV Is Conservative

Hard money lenders are taking on more risk than conventional lenders — they are lending on properties that may be in poor condition, to borrowers who may have credit challenges, and closing fast without full conventional due diligence timelines. The lower LTV is the primary risk management tool that protects both lender and borrower.

How LTV Affects Your Down Payment

At 70% LTV on a $400,000 purchase, you would need to bring $120,000 (30%) to closing. This is significantly more than the 3.5%–20% required for conventional or FHA financing, which is why hard money is best suited for investors with available capital.

Cross-Collateralization

Some hard money lenders will consider cross-collateralizing multiple properties to increase the effective LTV on a transaction. This allows experienced investors with a portfolio of properties to leverage equity across multiple assets.