Hard money · New Orleans

Hard Money Loans in New Orleans, LA

Loan-size math and qualifying analysis for Hard money financing on New Orleans's $246k median home value. Strong fit.

Recommendation

Strong fit for New Orleans.

New Orleans has active flip + wholesale activity (flip fit 39/100, wholesale fit 98/100) — hard-money makes sense for the velocity these strategies require.

Loan math · New Orleans

Payment on New Orleans's $246k median.

Median home value (New Orleans)$245,988
Assumed LTV85%
Loan amount$209,090
Cash to close (down payment)$36,898
Assumed rate11.00%
Term6-18 mo, interest-only
Monthly P&I$1,917/mo
What it is

Hard money financing — the mechanics.

Short-term (6-18 month) loans underwritten primarily on the property's after-repair value and the borrower's flip/project experience. Interest-only payments during the term; balloon at maturity (paid off by sale or refinance).

Lender requires: 600+ FICO typical (some go lower), 10-20% cash to close, proof of reserves equal to 6 months of carry, project plan + scope of work. Funding in 7-14 days standard.

State context · Louisiana

How Louisiana law affects this loan.

See full Hard money in Louisiana breakdown.

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FAQ

Frequently asked.

What's the typical Hard money loan size for a property in New Orleans?

On New Orleans's $246k median home value, a Hard money loan at the standard 85% LTV would be approximately $209k, requiring $37k down.

What's the monthly payment on a typical Hard money loan in New Orleans?

Interest-only payment on a $209k Hard money loan at the typical rate of 11.00% would be approximately $2k/month, excluding taxes and insurance.

Is New Orleans a good market for Hard money financing?

New Orleans has active flip + wholesale activity (flip fit 39/100, wholesale fit 98/100) — hard-money makes sense for the velocity these strategies require.

What credit and reserves do Hard money lenders require for New Orleans properties?

Lender requires: 600+ FICO typical (some go lower), 10-20% cash to close, proof of reserves equal to 6 months of carry, project plan + scope of work. Funding in 7-14 days standard.

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