Appraisal Requirements for Hard Money Financing by Anchor Loans


– Regarding appraisals
we require an appraisal on every property that’s part and parcel of our rental program. That has to happen, we
need to have the appraisal in order to qualify for that program, and the appraisal has to
be delivered to anchor, to properly structure your loan. In regards to our fix and flip properties we do require an appraisal but we don’t lend off the appraisal. So we have a valuations department and they will determine the
valuation on your property, both as is value, current value, as well as ARV, after repair value. And we’re confident
enough in our skill set and having done that thousands
and thousands of times that we will lend off
of that, we will require to get an appraisal for
a number of reasons, whether that particular
loan is gonna be sold into one of our managed mortgage funds or whether that particular
loan is gonna be collateralized on one of
our credit facilities, typically an appraisal is needed. But the loan won’t be
held up for the appraisal, the loan won’t be structured
around the appraisal. As far as the borrower knows
the appraisal is not a factor that’s gonna be a road
block or a speed bump in getting your loan closed. We’ll order the appraisal
prior to closing the loan, again talking about fix and
flip, or construction lending. We’ll order the appraisal
prior to the loan closing but sometimes the
appraisal won’t be received until after the loan closed. Or sometimes the appraiser
may not even visit the property until after the loan closed because of their busy
schedule or what not. So we do require our borrowers
in those particular cases to be compliant and allow
the appraiser to get at the property to the
extent that our borrower has control over that. But again that’s not gonna slow down your loan getting funded.

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