How Much Can You Borrow with a Hard Money Loan? Understanding LTV, ARV, and Leverage
Disclaimer: This blog is for informational purposes only and should not be considered financial, legal, or investment advice. Always consult a qualified advisor before making financing decisions.
For real estate investors, leverage is everything. But how much can you really borrow with a hard money loan—and what determines the amount?
At QuickLend Capital, we help investors across Texas, the Southeast, and New York structure deals that balance risk, return, and capital efficiency. Whether you're flipping, rehabbing, or refinancing, it starts with understanding how Loan-to-Value (LTV) and After Repair Value (ARV) drive the numbers.
What Determines How Much You Can Borrow?
Hard money lenders evaluate several factors to determine loan size:
Purchase Price
Renovation Budget
After Repair Value (ARV)
Loan-to-Value (LTV) or Loan-to-Cost (LTC)
Experience and credit profile
Typical Hard Money Loan Limits
Up to 90% of purchase price
Up to 100% of rehab costs (funded in draws)
Up to 70–75% of ARV (After Repair Value)
Example:
Purchase Price: $200,000
Rehab Budget: $50,000
ARV: $320,000
Max Loan: Up to $240,000 (75% of ARV)
What is ARV and Why Does It Matter?
After Repair Value (ARV) is the projected market value of a property after renovations. Hard money lenders use it to assess potential upside and determine how much they’re willing to lend.
Higher ARV = Higher Loan Potential
But the deal must support the numbers—based on comps, scope of work, and local market trends.
What is Loan-to-Cost (LTC)?
LTC measures how much of your total project cost is being financed.
Example: Purchase ($200K) + Rehab ($50K) = Total Cost $250K
If loan = $225K, then LTC = 90%
Most lenders cap LTC between 85% and 90% depending on experience, deal strength, and exit plan.
Factors That Impact How Much You Can Borrow
Borrower experience
Credit score (minimum often 660+)
Exit strategy (flip vs hold)
Location and asset class
Condition of property and renovation plan
Common Use Cases
Fix and flip loans in high-velocity markets like Tampa, Atlanta, or Houston
Short-term bridge loans for time-sensitive acquisitions
Cash-out refis on recently stabilized flips
Rental repositioning before converting to DSCR financing
How QuickLend Capital Structures Your Loan
We review your deal holistically—not just on a spreadsheet.
Competitive rates and LTVs
Transparent rehab draw process
Fast approvals and closings
Lending in Brooklyn, TX, GA, SC, NC, and more
Ready to find out how much you can borrow on your next deal?
Submit a loan scenario to QuickLend Capital and get same-day feedback.