Another Pass: Property Had a Great Location but the Advance Was too High

We recently declined a loan secured by commercial land in Bluffdale, Utah. This area has experienced tremendous growth over the past decade. As it is near Silicon Slopes, there continues to be great demand in this area. However, the borrower wanted an advance equal to 70% of the land’s value. Despite this property’s growth prospects, we felt this was too high of an LTV ratio for commercial ground, so we passed.